EUROZONE DATA
Not surprising to see the Eurozone November flash PMIs weaker than expected following the German/French data earlier this morning. This was nonetheless the weakest composite PMI since January this year at 48.1 (vs 50.0 cons and prior), and the first time in 10-months that the services component was contractionary (49.2 vs 51.6 cons and prior).
- Once again, the two largest Eurozone economy were the main drags on growth. According to the report: “The rest of the Eurozone continued to see business activity increase, albeit the rate of expansion was only slight and the slowest in the current 11-month sequence of growth”.
- On a forward-looking basis: “The rest of the euro area remained strongly optimistic in the 12-month outlook for output, albeit slightly less so than in the previous month”.
- Employment: “Staffing levels fell in Germany, but rose in France and in the rest of the Eurozone”.
- Prices: “In line with the picture for input costs, higher charges for services contrasted with falling selling prices in manufacturing. At the composite level, output prices increased in Germany, France and across the rest of the Eurozone”.
- We also highlight weak developments in export markets (which are in focus given the threat of US tariffs following the election result): “In line with the picture for total new orders, new business from abroad (which includes intra-Eurozone trade) also declined to the largest extent since the end of last year. New export orders were down sharply, and to a greater degree than seen for total new business”.
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