Euro output shows signs of stabilising

Tim Wallace
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ECONOMIC activity stabilised in the Eurozone this month, Markit’s purchasing managers’ index (PMI) showed yesterday, though employment was hit across the area.

Services PMI rose to a five-month high of 50.5, up from 48.8 in December, while the manufacturing output index rose from 47.1 in December to a six-month high of 50.

Any figure above 50 represents expansion.

Taken together, Markit’s composite PMI hit 50.4 – the first expansion in output for five months.

Germany experienced its strongest growth for seven months, with a PMI of 54 while French growth was more modest, at 50.9. However, the rest of the Eurozone contracted.

“The data suggest the rate of contraction may have peaked back in October, and the slide back into recession may be avoided,” said Markit.

Meanwhile industrial output fell by 1.3 per cent in November – lower than the2.2 per cent fall forecast.