Eurozone Downturn Deepens According To Flash PMI But Inflation Pressures Tick Higher

Summary

• Eurozone business activity contracted at an accelerating pace in August, according to the latest flash PMI survey data.
• The overall rate of input cost inflation and selling prices remained indicative of consumer price inflation running at an annual rate of 3% in the coming months.
• The eurozone economy slipped deeper into decline in August, raising the likelihood of GDP falling in the third quarter.

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Eurozone business activity contracted at an accelerating pace in August, according to the latest flash PMI survey data, as the region's downturn spread further from manufacturing to services. Both sectors reported falling output and new orders, albeit with