Business activity in France support the private sector in the euro zone – The Financial

LONDON A surprising growth of business activity in France helped the private sector in the euro area to remain stable in August, but the factories could face obstacles in September because the increase in new orders stagnated, according to polls released Tuesday.

the picture block for the coming months has been overshadowed by the foreseeable effects of the decision UK to leave the European Union ( EU ), but so far the effects seem to be confined to the British economy, not its largest trading partner.

“the slight rise Composite Index Purchasing Managers euro zone suggests that despite the blow for the referendum in the UK, the economic conditions remain largely contained, “said Stephen Brown of Capital Economics.

private sector in France unscathed seemed the result of the vote in the UK and accelerated last seen before the Islamist attacks in Paris in November levels as a breakthrough in the service sector offset by weakness manufacturing.

That attack, and the recent attack in Nice occurred in July, they undermined the service industry in the country in July (the hotel and restaurant sectors in particular) and reduced travel demand Europe.

still, the optimistic overall outlook should reduce fears that the French economy continues to decelerate this quarter, after stagnating unexpectedly in the second quarter of the year.

growth German private sector slowed in August, but remained robust overall, according to the PMI survey, suggesting that Europe’s largest economy is poised to continue expanding in the summer after growing more than estimated in the second quarter.

preliminary Composite Purchasing Managers Markit for the euro zone index rose to a seven-month high of 53.3 in August compared to the figure of 53.2 in July.

A measurement above 50 indicates expansion. A Reuters poll of economists had forecast a slight decline to 53.1.

Markit said the PMI suggests that the bloc’s GDP would expand 0.3 percent this quarter, in line with estimates of Reuters this month that showed a stable outlook for the euro zone, although weak.

But the alarm came from the growth of new orders factories, as they stood at its lowest since early 2015 falling to 51.5 from 52.2 in July, indicating that the manufacturing sector PMI in the euro zone could decline next month.