Berlin, Aug 21 (DPA) The economic gloom which descended on Europe over the last 12 months is slowly continuing to lift, with key surveys released Friday showing industry confidence gaining ground this month.

The economics research group Markit said its composite purchasing managers' index (PMI) for the 16-member eurozone showed the currency bloc's economy edging its way towards expansion this month after posting its seventh consecutive rise.

'The further sharp rise in the eurozone composite PMI index suggests that underlying economic conditions continued to improve markedly in August and that the economy may have stopped contracting in the third quarter,' said Ben May European economist with the market research group Capital Economics.

Markit said the eurozone composite PMI rose more than forecast to 50 in August from 47.0 in July underpinned by a pickup in both the manufacturing and service sectors. An index reading of 50 is an indication of economic expansion.

The release of the latest purchasing managers' index came just over a week after the European Union's statistics office Eurostat said the eurozone had only marginally missed out on emerging from recession during the second quarter.