(RTTNews) - Monday, the start of the week as well as the month of September remained busy with the release of survey data for the manufacturing sector for many European nations. Official data showed that the German retail sales continued to fall and UK mortgage approvals hit a record low in July.

Eurozone

Confirming the weakness in Eurozone manufacturing activity, the Purchasing Managers’ Index, or PMI for the sector stood below the neutral level for the third straight month in August. The Markit manufacturing PMI for August stood at 47.6, up from the flash estimate of 47.5. A reading above 50 indicates expansion, while a reading below that suggests contraction. The PMI remained below the critical level for the third month in a row, reflecting further decrease in production, new orders and employment. The index remained below the 50-mark all the big-four Eurozone nations.

According to the survey results of Markit Economics and BME, the manufacturing PMI for the largest Eurozone economy dropped to 49.7 in August, which was the lowest level in three years. The flash estimate for August was 49.9. Job creations in Germany were the weakest in two-and-a-half years.

The contraction of French manufacturing sector gathered pace, with the manufacturing PMI dropping to the weakest since January 2002, the Markit/CDAF survey showed. The indicator now stands at 45.8, down from July’s 47.1. The initial estimate was 45.1 for August.

The Markit/ADACI survey showed that the Italian manufacturing PMI climbed to 47.1 in August from 45.3 in July. The Italian manufacturers experienced tough operating conditions as output and new orders declined in August.

The Spanish manufacturing PMI, reported the third lowest level in the ten-year survey history. The index stood at 42.4 in August, up from 39.2 in July, the survey conducted by Markit Economics revealed.

Among others, the Manufacturing PMI for the Netherlands improved in August, although it remained below the boom-or-bust level, results of a survey by Markit Economics showed. The Dutch NEVI/DPA Purchasing Managers’ index increased to 49.8 in August from 48 in July, mainly due to an increase in production levels and a slower rate of decline in new orders. Ireland’s NCB Manufacturing PMI rose to 44.9 in August from July’s record low.

The German retail sales dropped in July by a seasonally and calendar adjusted 1.5% in real terms, following June’s 1.4% monthly decrease, a report released by the Federal Statistical Office showed. Economists had expected just 0.3% monthly decline in retail turnover. Compared to previous year, turnover in retail trade was flat in July, while economists anticipated 2.3% fall. In June, retail turnover recorded an annual decrease of 3.9%.

The ISTAT reported that Italy’s large company employment, including short-term working allowance, fell 0.2% month-on-month in June. Excluding, the short-term working allowance, large company employment dropped 0.1%. Year-on-year, Italy’s large company employment, including short-term working allowance, fell 0.3% including short-term working allowance. Stripping off the allowance, it was down 0.2%.

The Italian statistical office also announced that the hourly wages increased 4.3% year-over-year in July, after rising 3.6% in June. Economists had expected an increase of 3.7% for July.

The Central Bureau of Statistics announced that the Dutch consumer spending increased price adjusted 1.3% year-on-year in June, marking a slower pace than the 2.9% and 2.8% recorded in May and April, respectively. In the second quarter, the Dutch consumer spending rose 2.3% year-on-year, slightly less than the 2.4% in the first quarter.

The National Statistical Office of Malta announced that the country’s industrial producer prices increased 0.5% year-over-year in June, after rising 0.1% in May.

Rest of Europe

The UK manufacturing sector continued its downturn and stood near a nine-and-a-half-year low as domestic and foreign demand contracted in August, results of a survey showed. The latest monthly survey from the Chartered Institute of Purchasing & Supply, or CIPS and Markit Economics showed that the Purchasing Managers’ Index for the manufacturing sector rose to 45.9 in August from 44.1 in July. Though the indicator climbed from a nine-and-a half year low reported in July, the PMI stood below the neutral level of 50.

The Bank of England said in a report that the number of loans approved for house purchases in the UK fell to 33,000 in July, the lowest since the series started in 1993. The bank had downwardly revised mortgage approvals for June to 35,000 from an initial estimate of 36,000.

A report released by the Building Societies Association, or BSA showed that the mortgage approvals in the UK declined in July from the previous year. Net lending by building societies was minus 79 million pounds in July compared with 506 million pounds in the previous year. Approvals were valued at 2,511 million pounds, down from 3,928 million pounds in the year ago period. Gross lending also declined to 3,300 million pounds in July from 4,417 million pounds in the preceding year.

Earlier in the day, the Hometrack housing valuation company said in a report that housing prices in Great Britain fell 0.9% in August. The decrease was the 11th consecutive decline, and follows a 1.2% drop in July.

The Swiss SVME PMI for the industrial sector dropped 1.6 points to 52.5 in August, a monthly survey conducted by SVME and Credit Suisse showed. Economists were looking for a reading of 53.2. Although the index stood above the critical level of 50 in August, it remained below the long-term average of 54.4.

Survey results released by the Markit Economics and ABN AMRO indicated that the Czech Manufacturing PMI declined to 47.3 in August from 49.9 logged in July, the lowest since series was started in July 2001. The Turkish ABN AMRO Manufacturing PMI fell to 48.3 in August from 49.4 recorded in July, indicating sharper contraction in the sector. Poland’s ABN AMRO Manufacturing PMI declined to 45.8 in August from 46.4 in July.

A report from Markit Economics and VTB Bank showed that the Russian manufacturing PMI fell to 49.4 in August, falling for the fifth straight month. The August PMI marked the first contraction in manufacturing since November 2004.

The Statistics Denmark announced that the Danish Gross Domestic Product, or GDP grew 0.6% quarter-on-quarter in the second quarter, compared with a 0.8% decline in the first quarter. The quarterly growth matched economists’ expectation. Year-on-year, the Danish economy expanded 1.2% in the second quarter, after contracting 0.7% in the first quarter. Economists were looking for a 1.4% growth. The Danish statistical agency also said in a report that retail sales decreased seasonally adjusted 2.5% month-on-month in July. The statistical office noted that retail sales declined for three straight months for the first time since 1996.

The Statistics Norway said in its report that the country’s M2 money supply twelve-month growth stood at 8.4% in end-July, its lowest level since January 2005. In end-June, money supply had risen a revised 8.8%, which was initially estimated at 8.9%. The annual growth in money supply dropped for the third month in a row. The twelve-month growth in the credit indicator C2 declined to 13.1% in end-July from 13.4% recorded in end-June.

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