A key European index reached the highest level in more than two years in August, showing the recovery in the eurozone is gaining momentum. The Purchasing Managers\' Index (PMI) for the manufacturing and service sectors rose to 51.7 points from a July reading of 50.5, the London-based research group Markit said Thursday. The level is the highest in 26 months, according to DPA. Analysts had expected the indicator, which is based on a survey of about 5,000 companies, to edge up to 50.9. A reading above 50 indicates an expansion in economic activity.