OIL: Venezuela Oil Exports Rose 27% in August

• MNI: EUROZONE JULY FINAL SERVICES PMI 51.0 (51.2 FLASH, 50.5 JUNE)

• MNI: GERMANY JULY FINAL SERVICES PMI 50.6 (50.1 FLASH, 49.7 JUNE)

The details of the Italian services PMI read quite similarly to the Spanish print earlier this morning, even if slightly weaker-than-expected at 52.3 (vs 52.6 cons, 52.1 prior). The composite PMI was in line with consensus at 51.5 (vs 51.1 prior), and has now been in expansionary territory since February. Note however that Q2 flash GDP was -0.1% Q/Q in Q2, with the services industry making zero contribution to sequential GVA growth. 

Key notes from the release:

• “Panellists noted that increased volumes of new work, in part linked to new clients and the commencement of projects, had contributed to activity growth”
• “Services demand stability remained centred on the domestic market, as new export business declined in July. Panellists reported fragility in demand conditions internationally”.
• “Service providers in Italy responded to an overall positive inflow of new business by adding to their payroll numbers at the start of the third quarter”.
• “While the latest data signalled that services companies in Italy paid more for their inputs, the rate of inflation was noticeably softer than earlier in the year”
• “Reflecting firms' attempts to pass-through increased costs to clients, prices charged also rose in July”
• “With the service sector retaining its growth path, firms remained confident that activity levels would rise over the coming year”