Fears over the strength of the eurozone recovery re-emerged this morning, with the publication of the manufacturing sector purchasing managers' index (PMI), which fell to a four month low in August.The index came in at 50.8, down from 51.6 in July, and barely registering growth. A reading above 50 signals expansion, below, contraction. The greater the divergence, the faster the degree of change.The reading came in below economists' forecasts, which had tipped a level of 51.2. The survey said the decline in August showed an easing in the rate of improvement in the manufacturing sector for the second month.
The rate of increase was the weakest since April and well below the peak seen before the downturn of late 2000, it said. The index is based on a questionnaire sent to purchasing executives in over 1,500 companies. Data published for Germany, the eurozone's largest economy, was even more disappointing.The manufacturing sector purchasing managers' index fell to a seasonally adjusted 49.1 points in August from 50.1 in July, signalling a contraction of activity in the month. Market consensus was for 49.6 points. ///www.fxcentre.com