Eurozone PMI Services was finalized at 55.9 in November, up from October;s 54.6. PMI Composite was finalized at 55.4, up from October’s 54.2. Looking at some member states, Ireland PMI composite dropped to 7-month low at 59.3. Spain rose to 3-month high at 58.3. Italy rose to 3-month high at 57.6. France rose to 4-month high at 56.1. Germany rose to 2-month high at 52.2.
Chris Williamson, Chief Business Economist at IHS Markit said:
“An improvement in the rate of economic growth signalled by the eurozone PMI looks likely to be short-lived. Not only did demand growth weaken, but firms’ expectations of future growth also sank lower as worries about the pandemic intensified again. With the data collected prior to news of the Omicron variant, sentiment about near-term prospects will inevitably have been knocked even further….
“..While growth risks have shifted to the downside, risks to the inflation outlook seem tiled to the upside if virus case numbers continue to rise and new restrictions are introduced. Supply chains will be further hit, staff availability will deteriorate and spending could shift from services to goods again, further exacerbating the imbalance of supply and demand.”
