Stagnant new work limits eurozone private sector growth in November - IHS Markit

November’s final IHS Markit Eurozone PMI Composite Output Index continued to signal marginal growth of the euro area’s private sector. Posting 50.6, unchanged on October and slightly better than the earlier flash reading of 50.3, the index remained amongst the lowest levels in the past six-and-a-half years.

The services economy again remained the primary driver of overall growth, despite its positive contribution waning slightly since October. In contrast, manufacturing output fell again, extending the current period of contraction to ten months. However, the drag on overall economic activity from manufacturing continued to ease as goods producers indicated their slowest fall in production since August.

The IHS Markit Eurozone PMI Services Business Activity Index moved slightly lower in November, posting 51.9, compared to 52.2 in the previous month. The latest reading was the second lowest recorded by the survey since January, although all nations covered recorded some expansion of activity. Modest growth of the service sector was underpinned by a similarly muted increase in new business volumes. Gains in new work continued to be undermined by ongoing falls in services exports.

Looking ahead to the coming 12 months, service providers were on balance confident of an increase in activity from present levels. Sentiment was at its highest level since July, though remained well down on the historical series average.