Eurozone growth moderates slightly in August

Monday's economic reports from Europe were mixed.

Reuters reports that growth in the euro area moderated in August.

The euro zone's economic recovery moderated only slightly in August and companies are more optimistic about the coming months despite a divergence in growth rates between countries, a survey showed on Monday.

The Eurozone Flash Composite Purchasing Managers' Index (PMI), which gauges activity in thousands of services and manufacturing companies, fell in August to 56.1 from 56.7 in July, a slightly bigger fall than expected.

However, consumer confidence in the euro area improved in August. Again from Reuters:

Euro zone consumer confidence showed a steady improvement in August, figures from the European Commission showed on Monday, although the longer term prospects for the region's growth remain uncertain.

The Commission's flash estimate of consumer optimism in the 16-country currency area rose to -11.7 this month from a revised 14.0 in July (previously reported as 14.1), the data showed. The figure puts the index at a 27-month high.

Across the whole 27 country European Union, sentiment improved to -11.4 from -13.8.

Meanwhile, US economic activity improved in July, according to the Chicago Fed's national activity index.

Led by improvements in production-related indicators, the Chicago Fed National Activity Index returned to its historical average of zero in July, up from –0.70 in June. Three of the four broad categories of indicators that make up the index improved from June, but only the production and income category made a positive contribution to the index in July.

The index’s three-month moving average, CFNAI-MA3, edged lower to –0.17 in July from –0.12 in June. July’s CFNAI-MA3 suggests that growth in national economic activity was somewhat below its historical trend. With regard to inflation, the amount of economic slack reflected in the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.