Eurozone Business Activity Shows No Sign of Brexit Slowdown

Tuesday, August 23, 2016 5:17 am | < 1 Minute Read

European Union (EU) flags fly in front of the European Central Bank (ECB) headquarters in Frankfurt, Germany, December 3, 2015. REUTERS/Ralph Orlowski/File Photo — European Union (EU) flags fly in front of the European Central Bank (ECB) headquarters in Frankfurt, Germany. (Reuters/Ralph Orlowski/File Photo)

Business activity across the 19-country Eurozone grew at a steady but subdued pace in August as the region continued to show little concern about the impact of a British exit from the European Union.

The purchasing managers’ index, a gauge of activity in the services and manufacturing sectors, rose slightly to 53.3 points from 53.2 in July. The index published by IHS Markit is on a 100-point scale, with the 50 mark separating contraction from growth in activity.

The result echoes the steady growth seen in July and confirms that businesses in the Eurozone are not overly worried about Britain’s decision to leave the EU, the broader 27-country trading bloc that includes the Eurozone. Britain has yet to trigger the clause that will start negotiations on the nation’s exit terms.

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