Eurozone manufacturing PMI hits 26-month low in August

By Gokhan Ergocun

ISTANBUL (AA) - The eurozone manufacturing Purchasing Managers Index (PMI) plunged to its lowest in the last 26 months with a reading of 49.7 in August, according to data released on Tuesday.

According to preliminary figures, the composite PMI index also hit its 16-month low at 49.2, US-based financial services company S&P Global announced on Tuesday.

"The overall drop in output was again driven by a contraction in the manufacturing sector, where production fell for the third month running and at a solid pace," said the data provider.

It added that the overall reduction in eurozone business activity was mainly centered on the largest national economies.

In August, Germany's manufacturing PMI was at a two-month low, while its composite PMI was at a 26-month low.

France's manufacturing PMI hit a 27-month low and its composite PMI was at its lowest in 18 months.

Andrew Harker, economics director at S&P Global Market Intelligence, said the fresh PMI figures signaled possible economic contraction in the third quarter.