Eurozone: August flash PMIs in the limelight – Nomura

Analysts at Nomura expect the euro area composite PMI for August to decrease to 54.1 from 54.3 in July.

Key Quotes

“At the sector level, we expect the regional manufacturing PMI to dip to 54.9 from 55.1 and the services PMI to drop to 54.0 from 54.2.”

“Concerns about the escalation in the world trade dispute should have a negative impact on manufacturing activity.”

“On top of that, the Turkish crisis should also hurt sentiment, given that the exposure of some European banks to Turkish assets is large. Our forecast for August’s flash PMI reading would be consistent with euro area GDP growth of around 0.4% q-o-q in Q3 2018.”