- Chris Williamson, chief economist at Markit
Activity in both manufacturing and services sectors of the Euro zone slowed in November, adding to concerns the Euro bloc's economy risks a renewed slowdown. Markit's Composite flash PMI reading dropped to 51.4, the lowest level in 16 months, down from 52.1 a month earlier. The manufacturing PMI gauge edged down to 50.4, but remained in the "green" territory for 17 consecutive months, while services PMI worsened to 51.3 from 52.3 recorded a month ago. While massive stimulus by the ECB will begin to take effect in coming months, sluggish growth in the top European economies Germany and France as well as increasing tensions in Ukraine jeopardize the Euro area's modest revival. The data compiler Markit said that PMI indicated a 0.1%-0.2% GDP growth in the fourth quarter. In Germany, manufacturing and services expanded at the slowest pace in 16 months, signalling that growth in Europe's powerhouse is poised to remain sluggish. German manufacturing PMI came out at 50.0, substantially below analysts' forecast for a 51.5 reading, while services PMI fell to 52.1 from a downwardly revised 54.4. French manufacturing continued shrinking as demand fell, casting doubt on the strength of the French economic rebound seen in the third quarter. French manufacturing index dropped to 47.6, the lowest level in three months. The services sector index climbed to 48.8, slightly better than expectations for 48.5, but still below the 50-point line denoting growth.
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