Surging demand for ‘Made in the Euro Area’ goods is feeding an economy that is creating jobs and finally also seeing price growth accelerate.A Purchasing Managers’ Index for manufacturing rose to 57.4 in August from 56.6 in July, according to IHS Markit. That’s the highest reading in two months and compares with a median estimate for a slowdown in activity. Momentum in services unexpectedly cooled to a seven-month low.The 19-nation euro economy gathered pace in the second quarter as more countries joined the recovery.
Steadily declining unemployment and business confidence at a decade high are feeding confidence that inflation — still well below the European Central Bank’s goal — will eventually pick up on a sustained basis.
Source: Euro-Area Factories Feed Best Growth Spell for Economy in Years – Bloomberg
EUR Climbs Ahead of Draghi Jackson Hole Speech
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Craig Erlam
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