Eurozone Growth Slows in August, Price Increases Up

06 September 2004

The Reuters Eurozone Composite Output Index reports that continuing expansion of private sector output in the Eurozone -- the eight largest European economies (Austria, France, Germany, Greece, Ireland, Italy, Netherlands and Spain) within the twelve nation euro currency area -- was recorded for the thirteenth successive month in August.

The Composite Indices are based on the results of surveys carried out in Germany, France, Spain, Italy, Austria, Ireland, Greece and the Netherlands (plus the UK, Poland and the Czech Republic for the EU data), covering over 6,000 manufacturing and services companies.

Key findings for the month are …

  • New Business Index
    This fell to a four-month low, though it remained well above 50.0 to indicate further substantial growth of demand for goods and services.

  • Employment Index
    At 49.8, this signalled a marginal drop in staffing levels during the month. Employment fell in manufacturing, but rose very slightly in services.

  • Input Prices Index
    This fell slightly for the third month in a row in August, down from 62.9 in July (and a recent peak of 64.1 in May) to 62.6. However, the index nevertheless continued to register strong growth of input costs, largely attributable to the high price of oil and related goods.
The Eurozone Purchasing Managers' Indices are designed to provide the earliest indication of business conditions in the Eurozone. The countries surveyed together account for an estimated 92% of total Eurozone gross domestic product.

Data sourced from: NTC Research; additional content by WARC staff