London, United Kingdom (4E) – Preliminary Markit composite purchasing managers’ index (PMI) for the 17-nation euro zone shows that private sector activity is still in contraction territory for the month of November.
The Purchasing Managers’ Output Index in November is at 45.8, which barely changed from October’s 45.7. Economists had projected a 45.7 reading. Thursday’s report shows that activity has slowed in 14 of the last 15 months.
Manufacturing PMI slightly inched up to 46.2 from 45.4 in the previous month. An index reading of under 50 indicates contraction in the industry.
Markit also reported that sentiment in the services sector fell to its lowest level since March 2009. The services businesses PMI dropped to a 40-month low at 45.7 in November, down from 46.0 in October.
November data also showed that Germany’s private sector output fell as it did in October. The German manufacturing sector contracted in November but at a slower pace compared to the previous month, while the service sector posted its fastest contraction since June 2009.
Private sector activity in France also contracted in November but at a slower pace. The preliminary Markit France Composite Output Index slightly improved to 44.6 in November from 43.5 in the previous month. Despite falling to its ninth straight month of contraction, the reading is still in its highest level since August.
The survey also estimates that fourth quarter GDP within the euro zone will fall to 0.5 per cent.