MNI: Eurozone Growth Near 7-Yr High: IHS Markit

--Eurozone Flash Dec Composite PMI At 58.0 After 57.5 In Oct

     LONDON (MNI) - Eurozone output growth picked up in December, with expansion

running at the highest level in ALMOST 7 years, a survey released Thursday

showed, with the expansion again led by the manufacturing sector. .

     The December Markit Composite Purchasing Managers' Index stood at 58.0, up

from the 57.5 reading seen in November. 

     According to the survey, growth was again seen across all of the 'big four'

nations, with French growth outpacing Germany for the third consecutive month

     Output and input cost inflation remained elevated, just dipping below

November's multi year highs.

     "Higher prices also reflected the need to pass higher costs on to

customers. Average input costs rose sharply again in both sectors, though

especially in manufacturing.," the survey said.

     --STRONG Q4 GROWTH

     "The eurozone economy is picking up further momentum as the year comes to a

close, ending its best quarter since the start of 2011. The PMI is signalling an

impressive 0.8% GDP increase in the fourth quarter, with accelerating growth

seen in both Germany and France, where fourth quarter growth rates of 1.0% and

0.7-0.8% are indicated respectively," said Chris Williamson, chief business

economist at IHS Markit. 

     "The eurozone upturn is being led by a booming manufacturing sector, with a

record PMI seen in December, but stronger domestic demand is also helping drive

faster service sector growth," he added. 

     "Although price pressures abated slightly in December, the robust growth of

demand and tightening labour market hint at rising core inflationary pressures

as we move through 2018," Williamson noted.

     The full text of the IHS Markit release can be seen here: goo.gl/oaJXiU

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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