China's services sector cools in July, but euro zone service activity is led higher by Germany, if slightly - and still with little sign of any major Brexit impact. Laura Frykberg reports.
Business in the euro zone is not quite booming. But it's better than expected. New PMI figures from Markit, show it above forecasts at 53.2 in July. Anything above 50 denotes growth. Leading the charge is Germany's service sector. Masking weaker performances from France, Spain and Italy. (SOUNDBITE) (English) HEAD OF RESEARCH FOR UK AND EUROPE AT NATIONAL AUSTRALIA BANK, NICK PARSONS SAYING: "The latest data across the euro zone tells us of an anemic economic recovery. Now there are many policy makers who would gleefully grab that. It's certainly better than it's been in a number of years in countries such as Italy and Portugal. But it's not an economy which is growing back yet at its long-term trend growth rates." Business in Britain is much worse. Since voting to leave the EU, services shrinking at its fastest rate since the global financial crisis. Analysts warn Brexit could also impact politics in Europe. Giving rise to extreme parties which support isolationist policies. (SOUNDBITE) (English) HEAD OF RESEARCH FOR UK AND EUROPE AT NATIONAL AUSTRALIA BANK, NICK PARSONS SAYING: "Next year we have got presidential elections in France. We have federal elections in the Autumn in Germany. And I think it is going to provide a worrying backdrop. I think Brexit has made the political scene in Europe much more uncertain." Uncertainty too in China. Its services cooled last month, falling to 51.7. Bad news for Beijing. It had been counting on the sector to boost to economic growth, which has plunged to its lowest level in 25 years.