Euro area flash services PMI index likely to have recovered slightly in August

The flash estimates of euro area’s Purchasing Manager Indices are set to be released tomorrow. In 2018, the sentiment surveys have dropped markedly for both the manufacturing and service sectors, a decline that has also coincided with a perceptibly slower pace of growth. In the first half of 2018, euro area GDP has grown just 1.4 percent.

The August PMIs surveys are expected to offer insights into the prospects for a euro area growth recovery in the second half of 2018, noted Wells Fargo in a research report. In the prior month, the manufacturing PMI had risen to 55.1 and is likely to remain stable at 55.1 in August. The services PMI is expected to have recovered slightly to 54.4 in August from 54.2 in July.

“With services accounting for the majority of the economy, it is the services PMI outcome that may be most influential for expectations of the path of the Eurozone economic growth”, added Wells Fargo.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Euro was bullish at 90.8013, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -19.8135. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex