Paris Olympics Unexpectedly Boost Eurozone Economy

The eurozone economy received an unexpectedly strong boost after the Paris Olympics, which pushed private sector growth to its fastest pace in three months.

Bloomberg reports.

The S&P Global Composite Purchasing Managers' Index jumped to 51.2 in August from 50.2 in July, exceeding even the most optimistic forecasts in a Bloomberg survey of analysts. The services gauge climbed to its highest level since April, although the region's manufacturing contraction deepened.

There is much to suggest that the Olympic spirit is not here to stay - even in France, where growth picked up sharply this month. Production in Germany, Europe's largest economy, fell more than expected.

‘It's a tale of two worlds,’ Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said on Thursday. ‘With the temporary Olympic boost in France fading and signs of declining confidence in the eurozone's services sector, it is probably only a matter of time before the manufacturing sector's difficulties start to affect services as well.’

The data suggests that the eurozone will struggle to maintain its strong momentum in the first half of the year, despite the sporting surprise. Analysts polled by Bloomberg see only modest growth in Germany's economy throughout 2024.

The continent's underlying weakness has intensified calls for the European Central Bank to cut interest rates again next month after an initial cut in June.

As The Gaze reported, in a fierce struggle, in an extremely difficult time for Ukraine, Ukrainians won 12 medals: 3 gold, 5 silver and 4 bronze medals.