Eurozone August Services PMI Final Slightly Falls to 51.6; Employment Growth Hits Fastest Pace in Eight Months

(1) The Eurozone’s August S&P Global Services PMI final reading dipped slightly to 51.6 from July’s 51.7, revised down marginally from the preliminary value of 51.7, remaining close to the market expectation of 51.5. (2) This result consolidates the recovery trend in the Eurozone services sector following a contraction in PMI during the three months to June, triggered by soaring energy prices due to the Middle East conflict. (3) New orders continued to grow, with domestic demand across countries in the region outperforming export orders; the increase in new business outpaced output growth, although firms are still working through backlogs. (4) The resilience of demand drove the fastest employment growth in eight months for companies. (5) As for input costs, the rise in wholesale energy prices during this period gave fresh upward momentum, with input cost growth reaching a three-month high.