Business growth in the Euro zone rose unexpectedly this month was driven by price cuts that drives many new orders and create a company creating jobs. This brings optimism on the economic outlook of the region. Euro Zone Manufacturing PMI index in August the same as last month at 52.4, but this is better than predicted only 52.2. This reinforcement is supported by strong performance of Germany.
"The economic conditions of the Euro Zone really showed resilience. Seen from the increase in new jobs showing continued stable economic growth," said Rob Dobson senior economist at Markit. He also added, "Euro zone GDP is now moving closer to 0.4% in the third quarter of this year". It indicates the condition of Europe in accordance with the predictions of analysts by Reuters last week.
Flash PMI indices as an early economic indicator gave way to the European Central Bank (ECB) to undertake or discontinue the repurchase of bonds and will have an impact on the movement of the Euro currency.
German PMI Rises Sharply
Flash Germany PMI index in August rose to 53.2 from previously 51.8. New orders in the private sector companies in Germany increasing rapidly this month. Goods manufacturers reported a sharp rise in export orders.
Oliver Kolodseike, economist at Markit said: "The economic conditions of private sector Germany increased by output and new orders were both up quickly in four months. Moreover, survey data underscore (state) labor continued to benefit from demand (goods and services) are more powerful, where many companies opening up more vacancies. The pace of job creation (today) was the strongest since the end of 2011. "
"Based on the third quarter PMI data available so far, we expect German GDP to increase at a rate approaching (level) 0.4% that had been seen in the second quarter." he added.
Friday, 28 August 2015 Business