In an article published today in the Wall Street Journal says "Markit's euro-zone purchasing managers indexes show broad-based expansion in August, including in the so-called periphery countries, such as Spain and Italy. European stocks and corporate bonds should continue to win favor despite headwinds from U.S. monetary policy and emerging-market turbulence"
.The flash estimate of the August euro-zone composite PMI rose to 51.7 from 50.5 in July, Markit said, moving further above the 50 mark that separates contraction from expansion and rising for the fifth consecutive month. Growth was once again led by Germany, where new export orders jumped, pushing the composite PMI to 53.4.
.The flash estimate of the August euro-zone composite PMI rose to 51.7 from 50.5 in July, Markit said, moving further above the 50 mark that separates contraction from expansion and rising for the fifth consecutive month. Growth was once again led by Germany, where new export orders jumped, pushing the composite PMI to 53.4.
France disappointed. Its PMI dipped to 47.9, but forward-looking indicators appear encouraging: Manufacturing new orders rose and expectations in services remained positive. In any case, the French PMI has consistently understated the
strenghth of the economy.
The really encouraging news was that the rest of the euro zone saw output rise for the first time since May 2011, across both manufacturing and services. Both domestic and export sales improved, Markit said, indicating both that economies have become more competitive and are benefiting from reduced fiscal strains.
