Euro Area: Business-activity slump softens in November
The HCOB Global Composite Purchasing Managers’ Index (PMI) rose to 47.1 in November from 46.5 in October. Consequently, the index remained entrenched below the 50 no-change threshold, signaling another deterioration in business conditions compared to the prior month.
Both the services and manufacturing PMIs contracted at softer rates in November. Output and new orders fell at slower paces, while business confidence was somewhat less downbeat. That said, employment fell for the first time in nearly three years.
On the price front, input costs fell at a faster pace, as did output prices.
Commenting on the release, Bert Colijn, senior economist at ING, stated:
“The November PMI does not provide much evidence that eurozone GDP growth will turn positive in the fourth quarter, but the good news is that the downturn is not deepening. We’re currently likely in a very shallow technical recession.”