Economics
Europe’s Economy Starts to Lose Its Recovery Momentum
- Composite PMI fell to 51.9 in August from 54.9 in July
- Euro-area retail sales unexpectedly declined by 1.3%
A worker wearing a protective face mask waits for customers outside a restaurant terrace in Barcelona, on Aug. 18.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
The euro area’s recovery ran out of steam midway through the third quarter, with gauges of activity pointing to contractions in Italy and Spain.
While manufacturing output rose markedly in August, the larger services sector saw only marginal growth, according to an IHS Markit report. Orders increased at a slower pace, job cuts continued and confidence about the outlook eased. A separate report showed an unexpected decline in retail sales in July.