Markit's flash November eurozone PMIs beat expectations

Markit’s flash eurozone composite purchasing managers’ index rose to an 11-month high in November.

The PMI composite, which tracks the manufacturing and services sectors, rose to 54.1 from 53.3 in October, beating expectations for it to remain unchanged.

The flash services PMI came in at 54.1 from 52.8 in October, also an 11-month high and surpassing estimates of 52.9.

Finally, the flash manufacturing PMI printed at 53.7 from 53.5 in October, ahead of expectations for a reading of 53.3.

Market said rising order books prompted firms to take on extra staff at the joint-fastest rate since early-2008, and prices charged nudged up, suggesting inflationary pressures are at their highest for over five years.

Chris Williamson, chief business economist at IHS Markit, said: “The preliminary PMI results for November indicate the sharpest monthly increase in business activity so far this year, with plenty of signs that growth will continue to accelerate.

“The PMI readings so far for the fourth quarter point to GDP expanding 0.4%, led by a rebound in German growth to 0.5%. France is also seen to be enjoying its best spell since the start of the year, with the PMIs signalling GDP growth of 0.2-0.3% in the fourth quarter.”