Eurozone PMI services was finalized at 53.4, revised up from 53.1 down slightly from October final of 53.7. PMI composite was finalized at 52.7, down from October’s 53.1. That’s the lowest level since September 2016.
Among the countries, Germany PMI composite dropped to 52.3, hitting 47 month low. Markit noted that “It was in Germany where the euro area’s growth slowdown was centred, with latest data showing the weakest expansion here in nearly four years.”
Chris Williamson, Chief Business Economist at IHS Markit said:
“The final eurozone PMI for November came in higher than the flash reading but still only points to modest GDP growth of approximately 0.3% in the fourth quarter, suggesting the region remains stuck in a soft-patch.
“Output and order books are growing at the slowest rates for over two years as a manufacturing-led slowdown showed further signs of spreading to the service sector. The survey responses highlighted intensifying headwinds of Brexit and trade war worries, a struggling autos sector and rising uncertainty regarding the economic and political outlook.
“Business optimism is running at its lowest since late 2014, adding to downside risks for growth as we move into 2019. Furthermore, hiring, which has hitherto shown surprising resilience as firms have hoarded labour despite the slowdown in demand, is now also showing signs of weakness. Employment growth in November was the lowest for almost two years.
“Hardest hit has been Italy, where business activity declined for a second successive month in November, suggesting the economy is on course to contract again in the fourth quarter. However, with Germany reporting the weakest growth for nearly four years, the survey raises question marks about the extent to which GDP will rebound in the fourth quarter. Growth looks more resilient in France and Spain, thanks mainly to robust service sector performances.”
