Composite PMI indicator increases from level 50.9 to 51.1 points, to its strongest level since last May, while the market expected a drop to 50.6 points. In the PMI survey methodology, the level of fifty points is a division between growth and a decline in economic activity: the composite indicator has been over 50 points continuously since the beginning of this year and has always increased in the last three months. A more detailed view of the results of the August survey shows an improvement in the manufacturing situation, which is surprising, as the US was increased by the US at the beginning of August. For the Central European economies for which the euro area is a key business partner, the results of the survey for the euro area are good news, because at least for the time being, the activity in the European industry should be more likely to fall out in connection with the American duty. The composite (composite) PMI indicator, which maps the overall economic activity in the euro area, according to preliminary results increased from the July 50.9 points to 51.1, which is a 15 -month maximum. The financial market expected a decline in composite PMI indicator to 50.6, in the case of August favorably surprised the development in the manufacturing industry. The level of fifty points in this survey represents the limit between the growth and decline in economic activity and the composite PMI indicator for the euro area has been above the border level of fifty points so far in all months since the beginning of this year. A more detailed view shows that the PMI in the manufacturing industry increased from level 49.8 to 50.5 in August, which represents the highest level since June 2022 (the market estimate envisaged a decrease in this indicator to level 49.5). At the same time, for the first time since June 2022, the PMI indicator in the processing industry in the euro area above the key level of fifty points. The PMI indicator for the processing industry indicates that the activity in this sector of the economy has been resistant to the negative impact of cells imposed by the US: August's survey result is definitely a favorable surprise from the perspective of the processing industry, but it is not certain that this relatively favorable environment will maintain even longer views. However, the PMI sub-indece mapping production in the manufacturing industry in August increased from 50.6 points to 52.3: This is the highest level over the past 41 months. In the case of new orders in the manufacturing industry, the August survey reports their slight increase, but in the case of new export orders, the decline continues. The total PMI indicator for the service sector in August dropped from 51.0 points to 50.7: to its two -month minimum (the market expected a decline in the indicator to 50.8). The service sector reports a slight growth in new orders, which represents a favorable signal for the activity outlook for the coming months. If we exclude two minor exceptions (last November and this May), the service sector indicator is over the key limit of fifty points continuously since last February August survey PMI indicates the continuing growth of economic activity in the euro area. A positive surprise was brought by a survey for the processing industry, where the PMI indicator climbed above the critical level of fifty points for the first time since June 2022. According to the PMI survey, the growth continues to grow, although there was a slight slowdown in August. The duties renowned by the United States should have a negative impact on international trade and global economic growth, and Europe can hardly escape these negative impacts. However, the PMI survey itself suggests that the manufacturing sector in the euro area is doing well despite higher clients: definitely better than expected. The euro area economy showed GDP growth of 0.1 % inter -in -line this year and 1.4 % year -on -year and PMI surveys indicate that the euro area could maintain a slight inter -on -line GDP growth even in Q1. Although from the ECB perspective, the PMI survey is not the key indicator for its decision -making, so the results of the PMI survey fit into a scenario in which the ECB leaves interest at its upcoming meeting (September 11) unchanged (deposit rate at the current level of 2.00 %). dollar. Radomir Jac Chief Economist Generali Investments CEE
Radomír Jáč Radomír Jáč has been operating in the capital markets for twenty years, with the practice of the main analyst in the leading investment banks and asset management of companies active in Central European markets. It professionally covers macroeconomic development, including monetary and budgetary policy, monetary courses or government bond revenues, especially in the Central European region (including the Czech economy) and in the euro area. He studied everything in Prague with a focus on economic and social policy, economic theories and financial markets. Leisure time divides between their closest, running and literature.
Generali Investments CEE, Investment Company, AS
It offers individual investors and institutions comprehensive products and services in the field of collective investment and investment management. It manages Czech mutual funds led in Czech crowns and Irish investment funds offered in CZK, EUR and PLN. The offer of direct investment of individual investors in a wide range of mutual funds is complemented by products of regular investment, investment programs and life cycle products. The main institutional clients include insurance and locking companies and pension funds and at the same time manage the assets of the most important parts of Generali CEE Holding BV have been operating on the market since 1991 and, according to data from the Association for the Capital Market of the Czech Republic, the largest assets in the Czech Republic are the largest assets in the Czech Republic. Its assets in administration exceed CZK 289 billion. It also ranks among the leading companies in the Central and Eastern Europe region. Generali Investments CEE is part of the Generali Group, an independent Italian financial group with strong international competence, which was established in 1831. The Generali Group is one of the world's leading insurance companies with a prescribed insurance of € 70 billion (2016). In more than 60 countries, 74,000 experts employs. The Generali Group takes the leading position in Western Europe markets. He is gaining an increasingly significant position in Asia and also in the Central and Eastern European regions. In 10 countries of this region, the Generali Group is one of the leading providers of insurance through the Holding company Generali CEE Holding BV