Eurozone PMIs show economic recovery continues in November

The economic recovery in the Eurozone continued in November but price pressure remained largely muted, figures released on Thursday showed.

The final Markit Eurozone purchasing managers’ index rose from 53.9 in October to 54.2 in November, registering the 29th consecutive month of expansion. The figure was slightly below the flash estimate of 54.4, but helped the average for the quarter to 54.1, slightly above the 53.9 reading registered in the previous three months.

November’s expansion in economic activity was evenly distributed across the manufacturing and service sectors, with the growth rate in service sector output only slightly above that achieved at manufacturers.

Service sector new business rose at the fastest pace in four-and-a-half years, while the increase in manufacturing new orders was the quickest since April 2014.

Among individual countries, only France failed to register an expansion in growth in November, with Ireland and Spain registering the fastest rate of growth in four and three months respectively, while Germany’s economy expanded at the fastest pace since March.

Meanwhile, growth in the services sector in the Eurozone edged higher last month, to reach a three-month peak.

The Eurozone Services Business Activity Index rose to 54.2 in November, above October’s 54.1 but below the earlier flash estimate of 54.6, marking the 28th consecutive month of expansion.

November saw business activity rise across the nations for which data are collected, led by a further strong increase in the Irish service sector. Spain and Germany also saw marked output growth, with rates of increase at three- and 14-month highs respectively.

“With the November PMI data we now have a reliable indication of fourth quarter economic growth, and the upturn in the PMI points to euro area GDP expanding by 0.4% on a quarterly basis,” said Markit’s chief economist Chris Williamson.

“With the exception of France, growth rates are moving higher, but the ECB’s concerns over price stability are given further credence by the survey showing average prices charged for goods and services dropping for a second successive month.”