- Ken Wattret, chief euro region economist at BNP Paribas SA
Eurozone services and manufacturing sector contracted in December, however, at a slower pace, showing some signs of improvement, the research group Markit said Friday. Manufacturing Purchasing Managers' Index rose to 46.3 in December from 46.2 in November, but still remains below the 50 threshold, which separates growth from contraction. Including services and manufacturing, the Eurozone PMI composite output index jumped to 47.3, up from 46.5 in November. The improvement was mostly driven by the European leaders' decision, which assured a lifeline to Greece and laid the groundwork for a single bank supervisor.
"The rate of contraction in output at the euro-zone level is diminishing," said Ken Wattret, chief euro region economist at BNP Paribas SA in London. "The marked improvement in financial-market conditions and now some improvement in economic conditions mean the likelihood of the European Central Bank cutting rates again have diminished."
"The Eurozone downturn showed further signs of easing in December, adding to hopes that the outlook for next year is brightening," said Chris Williamson, chief economist at Markit.
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