Eurozone services PMI disappoints in December

Jessica Morris
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Eurozone PMI disappointed again in December (Source: Getty)

It's yet more bad news for the eurozone economy after miserable growth in its three largest economies ensured the single currency bloc disappointed again in December.

The eurozone's three biggest economies - France, Italy and Germany - had disappointing performances according to Markit's final December Composite Purchasing Managers' Index (PMI).

The index, where any reading above 50 indicates growth, showed France and Italy failed to grow in December. Germany fared slightly better limping along with a growth reading of 52.

Overall eurozone PMI, which is seen as a good gauge of economic growth, fell to 51.4 for December, down from an earlier estimate of 51.7. While this beat November's 16-month low of 51.1, the growth rate remains anaemic.

The figure is likely to ramp up pressure on the European Central Bank to embark on a programme of quantitative easing at its next council meeting on 22 January.

Chris Williamson, chief economist at Markit, said:

The weakness of PMI in December will add to calls for more aggressive central bank stimulus, including full-scale quantitative easing, to be undertaken as soon as possible.

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