Eurozone’s PMI Services for November showed a slight improvement, finalizing at 48.7, up from 47.8 in October. PMI Composite also experienced an uptick, reaching 47.5 from the previous month’s 46.5.
Looking at individual member states, PMI composite revealed mixed results. Ireland registered a three-month high at 52.3, while Spain hit a three-month low at 49.8. Italy reported a two-month high at 48.1, and Germany saw a four-month high at 47.8. France remained unchanged, with its PMI holding steady at 44.6.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, stated, “The service sector maintained its downward slide in November.” He noted that the modest improvement in the activity index offers little optimism for a swift recovery in the immediate future. De la Rubia also highlighted concerning trends, such as the fifth consecutive monthly decline in new business and subdued business expectations, which remain “well below the long-term average.”
Outlook for Eurozone’s economy, as inferred from these PMI indicators, is not encouraging. De la Rubia mentioned, “As per our GDP nowcast, factoring in the latest PMI indicators, a fall in GDP is on the cards for the fourth quarter.” He warned that if two consecutive quarters of negative growth define a recession, the Eurozone is currently “on the brink” of one.
