HOPES that the Eurozone might stage an end-of-year recovery have been dashed by a flurry of poor data released yesterday.
The composite purchasing managers’ index – a survey of private sector firms across services and manufacturing – compiled by Markit fell to 51.4 in November from October’s 52.1. Any figure above 50 signifies growth, but this sluggish growth is becoming slower.
“This supports the case for policy stimulus, not only from the ECB [European Central Bank], but also from the German government,” said economist Jennifer McKeown from Capital Economics.
Official estimates released last week showed the currency union grew by 0.2 per cent in the three months to September. The news was worse for Germany whose composite PMI fell to 52.1 in November from October’s 53.9.
Germany narrowly avoided recession with 0.1 per cent growth in the three months to September but these were preliminary estimates and could be revised either up or down. France’s composite PMI rose to 48.4 – a figure that signifies contraction. However, France is not in recession.