Investing.com - Private sector activity in the euro zone lost
momentum in November according to data released by Markit on
Thursday, underlining concerns over the economic outlook for the
currency bloc, after data last week showed that growth slowed in
the third quarter.
The Markit euro zone's manufacturing purchasing managers' index
ticked up to 51.5 in November from a final reading of 51.3 in
However, the euro areas services PMI declined to 50.9 this month
from 51.6 in October, disappointing expectations for an increase to
"The average reading over the fourth quarter so far is signaling a
very modest 0.2% expansion of GDP across the region, and it looks
like momentum is being lost again", Chris Williamson, chief
economist at Markit said.
"The fall in the PMI for a second successive month suggests that
the European Central Bank was correct to cut interest rates to a
record low at its last meeting, and the further loss of growth
momentum will raise calls for policymakers to do more to prevent
the euro zone from slipping back into another recession".
The ECB surprised investors after it unexpectedly cut rates to a
record low 0.25% earlier this month amid concerns over mounting
deflationary pressures in the euro area.
"Attention will also be focused on the signs that deflationary
forces may be gathering," he added.
Germany's manufacturing PMI rose to a 29 month high of 52.5 in
November, from 51.7 in October, while the services sector PMI rose
to a nine-month high of 54.5 from 52.9.
But weaker-than-expected French data indicated that activity in the
euro zone's second-largest economy contracted for the first time in
three months in November.
The French manufacturing PMI fell to a six-month low of 47.8 from
49.1 last month, while the services PMI dropped unexpectedly to a
four-month low of 48.8 from 50.9.
Last week, Eurostat said euro zone gross domestic product expanded
0.1% in the three months to September, slowing from the 0.3% growth
achieved in the second quarter when the euro zone exited a
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