Zone. Business activity showed surprising strength in August despite
firms raising prices. That's according to the preliminary purchasing
managers' index data released on Thursday, the results could
weaken expectations that the European Central Bank will make two
additional rate cuts this year. The Euro Zone's preliminary
PMI bounced to a forecast beating 51.2 from July's 50.2
moving it further from 50 the mark which separates contraction
from growth. However, the upswing may be temporary
. That's as the sunnier readings were driven by a
surge in the French service sector due to the Olympics
which offset ongoing weakness in manufacturing. And in Germany
, Europe's largest economy business contracted for a second consecutive
month and by more than expected. Even so the
reading beat even the most optimistic of forecasts in Britain
outside the European Union, readings were also uplifting business
activity accelerated and cost pressures eased to their weakest in
more than three years. Signaling steady growth momentum going
on in the second half of 2024.