Eurozone Private Sector Logs Modest Growth
December 03 2019 - 11:27PM
RTTF2
The euro area private sector growth remained the lowest in
six-and-a-half years in November, signaling modest expansion for
the fourth quarter, final survey data from IHS Markit showed
Wednesday.
The composite output index held steady at 50.6 in November. The
reading was slightly above the flash estimate of 50.3.
The services economy again remained the primary driver of
overall growth. Meanwhile, manufacturing contracted further in
November.
The final services Purchasing Managers' Index fell to 51.9 from
52.2 in the previous month. The flash estimate was 51.5.
The survey data are indicating GDP growth of just 0.1 percent in
the fourth quarter, with manufacturing continuing to act as a major
drag, Chris Williamson, chief business economist at IHS Markit
said.
"The near-stalling of the economy has been accompanied by some
of the weakest price pressures we've seen in recent years, which
threatens to keep inflation well below the ECB's target in coming
months and adds to the likelihood of further policy stimulus early
next year," Williamson added.
France remained the best-performing country in terms of output
growth, followed by Spain. Meanwhile, Italy and Germany registered
reductions in private sector output.
The French private sector logged a slight slowdown in November
reflecting a softer increase in services. Meanwhile, manufacturers
reported the fastest growth since June.
France's final composite output index slid to 52.1 in November
from 52.6 a month ago. The flash reading was 52.7. At the same
time, the services PMI dropped to 52.2 from 52.9.
Germany's private sector remained in contraction territory in
November. The composite PMI climbed to 49.4 from 48.9. The score
was also above the flash 49.2 but a reading below 50 indicates
contraction.
The service sector remained stuck in a slow growth phase in
November. The PMI rose slightly to 51.7 from 51.6 in the previous
month. The initial estimate was 51.3.
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