Eurozone Preliminary Manufacturing PMI beats estimates with 58.6 in November

• Eurozone Manufacturing PMI arrives at 58.6 in November vs. 57.3 expected.
• Bloc’s Services PMI jumps to 56.6 in November vs. 53.5 expected.

The Eurozone manufacturing sector activity improved more than expected in the reported month, the latest manufacturing activity survey from IHS/Markit research showed on Tuesday.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 58.6 in November vs. 57.3 expectations and 58.3 last. The index hit two-month highs.

The bloc’s Services PMI rose to three-month peaks of 56.6 in November vs. 53.5 expected and 54.6 previous.

The IHS Markit Eurozone PMI Composite climbed to 55.8 in November vs. 53.2 estimated and 54.2 previous. The gauge clinched two-month highs.

Comments from Chris Williamson, Chief Business Economist at IHS Markit

“A stronger expansion of business activity in November defied economists’ expectations of a slowdown, but is unlikely to prevent the eurozone from suffering slower growth in the fourth quarter, especially as rising virus cases look set to cause renewed disruptions to the economy in December.”

“The manufacturing sector remains hamstrung by supply delays, restricting production growth to one of the lowest rates seen since the first lockdowns of 2020. The service sector’s improved performance may meanwhile prove frustratingly short-lived if new virus-fighting restrictions need to be imposed. The travel and recreation sector has already seen growth deteriorate sharply since the summer.”

FX implications

EUR/USD is holding the higher ground, aided by the upbeat German and Eurozone Business PMIs, as it continues to benefit from the US dollar retreat.

The spot currently trades at 1.1269, up 0.31% on the day.