Eurozone Private Sector Expands More Than Estimated
January 05 2020 - 10:44PM
RTTF2
The euro area private sector expanded at a
faster-than-initially-estimated pace in December, final survey data
from IHS Markit showed Monday.
The composite output index rose to 50.9 in December from 50.6 in
November. The flash reading was also 50.6.
Despite the improvement to a four-month high, the index
continued to post at a level amongst the lowest seen since the
first half of 2013, Markit said.
The PMI data suggest the euro area will struggle to have grown
by more than 0.1 percent in the closing three months of 2019, Chris
Williamson, chief business economist at IHS Markit, said.
At face value, the weak performance is disappointing given
additional stimulus from the European Central Bank, with the drag
from the ongoing plight of the manufacturing sector a major
concern, Williamson added.
The survey revealed marked divergence between the manufacturing
and services economies. Manufacturing output declined at a rate not
exceeded for nearly seven years.
The growth was centered on the service sector as it reached a
four-month high. The services Purchasing Managers' Index advanced
to 52.8 from 51.9 a month ago. The score was above the flash
52.4.
At the national level, there was some positive news in Germany,
where there was a return to marginal growth following three months
of contraction.
Germany's final composite PMI climbed to 50.2, while it was
estimated to remain unchanged at 49.4. With goods production down
markedly on the month, growth was driven by the service sector. The
services PMI improved to 52.9 from 51.7. The flash score was
52.0.
Spain registered a solid rate of expansion, as did France.
Signaling the fastest growth since April, Spain's composite PMI
advanced to 52.7 from 51.9 in November. The services PMI came in at
54.9, up from 53.2. This was the highest since March.
The France final composite output index climbed to 52.0, in line
with estimate, from 52.1 in November. The growth was driven by
services. The services PMI rose to 52.4 from 52.2 a month ago. The
flash score was 52.4.
In contrast, Italy remained inside negative territory for the
second straight month. The composite PMI declined to 49.3 from 49.6
in November. The downturn was driven by the fastest fall in
manufacturing output for nearly seven years. Meanwhile, the
services PMI rose to 51.1 from 50.4 in previous month.
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