- Chris Williamson, Markit's chief economist
The U.S. Dollar was weaker against the shared currency on Wednesday due to the upcoming ECB meeting, while the 17-nation economy is still sending mixed signals, suggesting the ongoing recovery is still fragile. Hence, region's services sector grew more than initially was estimated in October, while retail sales surprised to the downside. Data from Markit showed a gauge of activity in the services industry fell to 51.6 from 52.2 in September, however, still above analysts' estimates for a 50.9. Despite a slowdown, the index still remains above the 50 threshold. Regarding the retail sales, they fell 0.6% month-on-month in September, down from a revised 0.5% gain in August.
On the back of improved fundamental data, analysts predict the region's economy to expand 0.2% in the third quarter, after exiting a record-long recession in the previous three months. For the whole 2013, the Eurozone would contract 0.4%, while for the next year, activity is likely to expand 1.1%, before jumping to 1.7% in 2015.
While the whole region is still struggling to build up steam, Europe's largest economy, Germany, is still bloc's powerhouse, as factory orders surged 3.3% in September. It follows an improvement in manufacturing PMI. Considering that Germany accounts for almost 27% of Eurozone GDP, the latest data could be interpreted as a welcoming sign.
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