The PMIs of France and Germany confirm the deterioration of activity in the two largest economies in the euro

MADRID, 23 Ago. (EUROPA PRESS) -

The economies of Germany and France, the two main engines of the eurozone, have registered a contraction in activity in the month of August, according to the respective Composite Purchasing Managers' Indexes (PMI), which reflect the worsening outlook and the lower propensity to consume in households as a result of uncertainty and inflationary pressures.

In the case of Germany, the composite PMI stood at 47.6 points in August from 48.1 in July, which is the worst reading of the data in 26 months, including a drop to 48.2 from 49.7 services PMI, at an 18-month low, while the manufacturing PMI rose to 49.8, from 49.3 in July, its best reading in two months, but still contracting.

"The PMI data paints a gloomy picture of the German economy in the middle of the third quarter," said Phil Smith, economist at S

On its side, the French composite PMI fell in August to 49.8 integers, compared to 51.7 the previous month, its worst reading in a year and a half, including a drop in the services PMI to 51 points from 53 .2 in July, at a 16-month low, while the manufacturing PMI stood at 49 integers, compared to 49.5 in July, its worst result in 27 months.

"European economies seem poised for a tough end to the year and France is no exception," said Joe Hayes, senior economist at S

"High inflation has reduced the purchasing power of both consumers and businesses, although we saw more signs suggesting that we have passed peak pressures. However, inflation remains high and businesses have reported that more and more customers are seeing deterred from placing orders due to the current price level," he said.