"The composite PMI was revised down slightly but it's still consistent with a pickup in euro zone GDP growth which is quite positive".
- Stephen Brown, Capital Economics
Business activity in the Euro zone hit its highest level this year last month, official data showed on Monday. According to Markit, the final Composite Purchasing Managers' Index came in at 53.9 in November, slightly below the preliminary reading of 54.1 but up from the previous month's final 53.3 points. The November figure marked the best reading since December 2015, with Ireland and Spain posting the strongest rates of increase and Germany contributing the greatest to the last month's expansion. In the meantime, the final Services PMI reported by Markit came in at 53.8 in November, following the flash estimate of 54.1 points. The Index remained above the 50 point level for the 40th straight month. The New Orders Index for the services industry climbed to 53.5 in the same month from 52.6 registered in October, while the Composite Output Price Index increase to 50.6 from the prior month's 50.0 points, the highest since August 2011. As to the region's manufacturing production, growth in the Euro zone's manufacturing sector slowed slightly from the preceding month. Still, manufacturing activity expanded at a slightly faster pace than services business activity. The latest PMI surveys suggest the economy is growing at an annualized pace of 0.4% in the Q4.
© Dukascopy Bank SA