Economic activity within the Eurozone has seen an unexpected surge in August, buoyed by the organisation of the Olympic Games in Paris.
The S&P Global composite PMI output index, a measure of economic activity, reached 51.2 in August up from 50.2 in July. Scores above 50 indicate growth, while those under 50 suggest contraction.
This higher-than-expected performance can be predominantly attributed to the vibrancy of the service sector, boosted by the Olympics. On the other hand, the manufacturing sector experienced further contraction.
Economists believe the upward trend in services may be a fleeting luxury, and that a slowdown in the industrial sector could eventually hit the service sector.
