- Chris Williamson, chief economist at Markit
Activity in the manufacturing and services sectors in the 18-nation bloc improved in December, despite the mixed data coming out from the region's largest economies, namely Germany and France. The preliminary manufacturing PMI for the Euro bloc rose to 50.8 points up from 50.1 in November, remaining in the green zone for 18 consecutive months. As to the Euro zone's services PMI, the flash reading climbed to 51.9 points in the reported month, up from 51.1 in November. Moreover, the closely watched composite PMI came out at 51.9 points, also an improved reading compared to a month earlier. In Germany, the Euro area's growth engine, the manufacturing sector returned to expansion with the corresponding index rising to 51.2, whereas the services sector activity slid to 51.4 points in December. In France, the Euro zone's second biggest economy, both sectors remained in red territory with the flash manufacturing PMI falling further to 47.9 points and the flash services PMI rising 49.8 points following last month's 47.9.
Meanwhile, German investors became more optimistic in December as the ZEW index, measuring investors' sentiment for the next six months, advanced to 31.8 in December, compared with 11.5 recorded in November. The ZEW Current Situation Index also jumped considerably, soaring to 34.9 following a 3.3 figure a month earlier.
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