European business activity contracted in August to its lowest level since November 2020 according to the euro zone's flash composite Purchasing Managers' Index. The PMI fell to 47.0 for August from 48.6 in July, below economists' expectations of 48.8. A reading below 50 marks a contraction in activity. Germany reported the deepest contraction in business activity in August. The service sector in the eurozone dropped to a 30-month low at 48.3, while the manufacturing PMI rose slightly to 43.7. This data suggests the eurozone economy may shrink by 0.2% in the third quarter.