The activity of the private sector in the euro zone at its expression for 15 months, France in the net withdrawal

The economic activity of the private sector experienced in August, in the euro zone, its greatest growth in 15 months, according to the PMI Flash index published on Thursday by S&P global. This barometer, calculated on the basis of corporate surveys, straightened up to 51.1, against 50.9 in July. A figure located below 50 indicates a fall in the activity. Above this threshold, it reflects a progression.

“The economic situation improves in the euro zone, the activity that has increased both in the manufacturing sector and in the services in August,” says Cyrus de la blonde, economist of Commercial Hamburg Bank (HCOB), a Global S&P partner, cited in a press release.

After months of very hard negotiations, Brussels and Washington sealed at the end of July a commercial agreement based on customs duties of 15% in European products that arrive in the United States. Before Donald Trump comes to power, European goods were taxed on average to 4.8%.

Stable for France

On the side of France, the activity of the private sector stabilized almost in August while it remained below the growth threshold. The index established 49.8 in August, compared to 48.6 in July, a “12 months higher.” The index “has strongly approached the 50.0 bar that separates the growth of the contraction in August”, underlining the authors of the survey.

But “if the index has increased slightly compared to the previous month, it does not give any sign of the next reversal of the trend,” said Jonas Feldhusen, a Hcob economist. “In a more positive note, the contraction has slowed into the manufacturing industry and in the service sector, a trend that, with cautious optimism, could be interpreted as a precursor to stabilization,” he adds. In detail, the PMI Flash index of service activity in France was recovered at 49.7 in August against 48.5 in July, again a “12 months higher”, while the PMI Flash index of manufacturing production fell to 49.8 in August against 48.6 in July, “higher than 3 months”.

Postal creations

In more general terms, the barometer emphasizes that after “a prolonged period of contraction”, the French economy “showed signs of stabilization in August”, employment has also registered growth for the first time since November 2024, the rate of creation of positions has reached a sixteen months summit. “