Slowing Euro-Area Manufacturing Adds to Case for ECB Action

Euro-area manufacturing activity slowed more than initially estimated in August as Italian output contracted, adding to signs that the region’s economic recovery may need another boost of European Central Bank stimulus.

A Purchasing Managers’ Index fell to 50.7 from 51.8 in July, London-based Markit Economics said today. While the number remains above 50, indicating expansion, it’s less than the Aug. 21 preliminary reading of 50.8. Italian manufacturing unexpectedly shrank last month, while German factory growth was less than initially estimated.