Eurozone Private Sector Growth Slowest In Nearly 4 Years
November 23 2018 - 4:48AM
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Eurozone private sector grew at the slowest pace in nearly four
years in November, with slower expansions in both manufacturing and
services, amid weaker demand and confidence, flash estimates from
IHS Markit showed on Friday.
The composite purchasing managers' index, or PMI, which combines
manufacturing and services, fell to 52.4 from 53.1 in October.
Economists had expected a score of 53.
The latest reading was the lowest since December 2014. A PMI
reading above 50 suggests growth in the sector.
The manufacturing PMI dropped to a 30-month low of 51.5 from 52
in October. Economists had expected the reading remain
unchanged.
The services PMI eased to a 25-month low of 53.1 from 53.7 in
October. Economists were looking for a reading of 53.6.
New order growth was the weakest since the start of 2015.
A new indicator for new export order decreased for a second
straight month for both manufacturing and services and at the
fastest pace in its four-year history.
Private sector employment growth eased to a 22-month low as
firms scaled back hiring plans amid waning order book growth and
gloomier outlook.
Higher energy, raw material and staff costs kept input cost
inflation higher. Intense competition prevented firms from passing
the higher costs to customers, and thus output price inflation was
unchanged, though elevated.
"As such, the survey data suggest that the weakness of GDP in
the third quarter may not have been a blip, and that the underlying
trend is one of slower economic growth," IHS Markit Chief Business
Economist Chris Williamson said.
"The PMI readings so far in the fourth quarter are indicative of
0.3 percent GDP growth, with forward-looking indicators such as new
orders and future expectations remaining worryingly subdued."
In Germany, business activity growth slowing to a near four-year
low.
The composite PMI dropped to 52.2 from 53.4 in October.
Economists had forecast a score of 53.1. The measure fell for the
third month and the latest reading was the lowest in 47 months.
The German manufacturing PMI dropped to a 32-month low of 51.6
from 52.2 in October, while economists had expected the reading to
remain unchanged. The services PMI decreased to a six-month low of
53.3 from 54.7 in October, while economists were looking for a
score of 54.5.
France's private sector growth eased less-than-expected in
November at the slowest pace in two months.
The composite PMI fell to 54 from 54.1 in October, while
economists had expected a reading of 53.9.
The manufacturing PMI fell to a 26-month low of 50.7 from 51.2
in the previous month, while economists had expected the reading to
remain unchanged. The services PMI eased to a two-month low of 55
from 55.3 in October, in line with economists' expectations.
In the rest of the single-currency area, the rate of private
sector expansion was the slowest since November 2013, easing in
both sectors to register only modest growth.
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