The PMI for industry in November in the euro zone stood at 45.2 points compared to 46.0 a month earlier. The reading was worse than predictions (46.0). The industry in the largest European economy continues to show weakness. The index for the industry in Germany did rise to 43.2 points, however, it remains firmly in the recession range. The index in France reached the same value.
The PMI reading for the services sector in the eurozone was 49.2 points. It was expected that the index would stay at 51.6 points. The index for the services sector for the first time since January fell below 50 points – the level separating growth from decline in economic activity. The reading from France, where the service sector index fell to 45.7 points against predictions at the level of 49 points, was particularly disappointing.
The composite PMI in November in the euro zone was 48.1 points compared to 50.0 a month earlier. The drop below the level of 50 points is significant this time. The weakness of the industrial sector continues, and the service sector is slowing down stronger and is no longer the driving force of economies as it was a few months ago.
Very weak PMI readings may be the most important data that the ECB will be guided by in its decisions in the coming months. Further signs of economic growth slowdown may be the basis for even faster rate cuts in the euro zone.
Author: Bartosz Wałecki, Analyst, Trader Michael / Ström Dom Maklerski
Source: https://ceo.com.pl/pmi-w-strefie-euro-spada-przemysl-i-uslugi-poglebiaja-recesyjne-nastroje-66138
