European S&P Global Composite PMI Flash (Aug) 52.1 vs. Exp. 51.7 (Prev. 52.0)

Encouraging signs of rising demand for AI-related tech goods and rising equipment demand thanks to higher defence spending. Rising tourism spending is helping boost economic growth, notably outside of France and Germany, where the region collectively saw the fastest services growth for over three years. Although high prices reportedly continue to dampen demand, price pressures have shown signs of further easing. However, with the flash PMI signalling solid third quarter GDP growth, a return to hiring by companies for the first time this year, and inflation remaining elevated by historical standards, a hawkish bias is likely to be maintained and further imminent rate hikes cannot be ruled out.”