Eurozone business activity losing momentum

|By:, SA News Editor

As expected, Eurozone flash manufacturing PMI has edged up to a 29-month high of 51.5 in November from 51.3 in October.

However, services slipped to 50.9 from 51.6 and missed consensus of 51.9.

Composite output declined to 51.5 from 51.9 and fell short of forecasts of 52.

Manufacturing output edged down to 52.8 from 52.9.

"It looks like momentum is being lost again," says Markit. "Deflationary forces may be gathering," while growth outside the "big two" of Germany and France "slowed to near-stagnation." French activity actually contracted.

Overall, the data is indicating that eurozone GDP will rise a "very modest 0.2%" in Q4, says Markit. The second-successive fall in PMI "suggests that the ECB was correct to cut interest rates to a record low at its last meeting."

The euro is -0.1% at $1.3423. (PR)

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