Pan Eurozone-PMI also disappoints

Services disappoint 0.8 points, manufacturing beat by 1.5 points and composite disappoints by 0.4 points. The latter moving to an 11-month low while services are at a 9-month low. This report seems more in line with the disappointing French report than the more upbeat German report. Highlights from the press release:

• "Tourism and recreation activity consequently fell at a rate not seen since last February, with transportation and media work also in decline. However, many other business service providers and financial services firms continued to report solid growth, being less affected by the Omicron wave than consumer-facing industries"
• "The survey gauge of new orders signalled a further expansion of demand, albeit at the slowest rate since the upturn began last March. While new orders for goods increased to the greatest extent since last August, inflows of new business into the service sector slowed to near-stagnation"
• Inflation: "A new record was seen in the service sector as costs were driven higher by energy and wage costs. Prices charged for goods leaving the factory gate also rose at an increased rate, just shy of November’s survey high, though an easing in manufacturers’ input price inflation to the lowest since last April was also reported, linked in part to the alleviating supply crunch."