The euro area manufacturing PMI was revised marginally higher in August to 55.1, from the 'flash' estimate of 55.0. The data for July and August suggest that euro area manufacturing activity moderated slightly in Q3 versus the strong pace set in Q2 (N.B. The series average for July-August is 55.9, compared to the Q2 average of 56.4). At the component level, there were few revisions of note.

Most notably, the new orders index was revised 0.3 points higher to 55.3, signalling a less marked decline versus the July outturn of 57.7. A less marked increase in the stocks of finished goods index (relative to the rise in new orders) meant the orders-stocks differential widened slightly in the latest month, signalling near-term output strength. On this basis, the most marked improvements were noted in France and Ireland (see chart).

At the national level, the German headline index was unrevised at 58.2 (vs. 61.2 in July). By contrast, the French index was revised slightly higher (55.1; 'flash': 54.7; July: 53.9). The most notable revision with the French survey was in the new orders index, which was revised 0.7 points higher to 58.0 (vs. 54.5 in July).

In Italy (where no 'flash' PMI estimates are published), the headline index fell to 52.8 in August, from 54.4 in July. The headline index was pushed lower by declines in the output (54.9, from 56.6) and new orders indices (53.5, from 54.7). In addition, the employment index slipped below the no-change mark of fifty to 49.4, from 50.4 in July. Meanwhile, the input price index fell sharply in August (to 59.0, from 64.9), while the output price index fell to 55.4, from 56.8.

In Spain, the headline manufacturing index declined to 51.2 in August, from 51.6 in July, reversing July's decline. Within the details, there was a fall in new orders index to 51.5, from 52.6. On a more positive note, the export orders index rose to 54.2, from 51.8, while the output index rose to 54.9m from 53.9. Elsewhere, labour market conditions remained weak, with the employment index inching towards the no-change mark of fifty in August to 47.2, from 46.6. The input price index rose 0.5 points to 61.1, while the output price index rose above the fifty mark to 50.4, from 49.6.

Elsewhere, in the euro area, the Greek manufacturing index reversed July's increase by falling 2.3 points in August to 43.0. That left the index 2.2 standard deviations below its long-run average. At a component level, the new orders index slumped to 40.4, from 45.1. In Ireland, the headline index remained above the fifty mark, although it fell 0.3 points to 51.1. Finally, the Dutch manufacturing PMI fell to 54.3, from 55.7.

source: BarCap