ECONOMY

Eurozone’s manufacturing growth strong

LONDON (Reuters) – Eurozone manufacturing growth remained robust in August despite cooling export orders and more modest price rises, a survey showed yesterday. The RBS/NTC Eurozone Purchasing Managers Index (PMI) showed the pace of growth in manufacturing output, new orders and job creation in the 12-nation bloc slowed for a second month, with more modest gains in both prices paid and charged. The overall PMI, which tracks activity in manufacturing and is based on a survey of 3,000 firms, fell to 56.5 from 57.4 in July and below economists’ forecasts of 57.0. But it stayed well above the 50 mark separating growth from contraction. «The PMI for August points to a further easing in the pace of manufacturing expansion, suggesting the rate of increase peaked at a six-year high in June,» said Kevin Gaynor, head of economics at RBS, which sponsors the data. The data are not likely to dislodge widespread expectations that the European Central Bank will raise interest rates in October and perhaps again in December after leaving them on hold at 3.0 percent on Thursday.