By Hans Bentzien
FRANKFURT (Dow Jones)–The economic downturn in the euro area slowed somewhat more significantly in November than previously assumed. As S&P Global announced in a second publication, the collective index of production in the manufacturing and non-manufacturing sectors rose to 47.6 (October: 46.5) points. Economists had expected confirmation of the 47.1 points reported in the first publication. The purchasing managers’ index (PMI) for the services sector increased to 48.7 (47.8) points. A confirmation of the first publication of 48.2 was expected. Index levels below 50 points indicate declining activity.
According to S&P Global, new orders in the services sector fell for the fifth time in a row and inflation pressure increased slightly again. At the same time, the business prospects for next year were assessed as somewhat less positive than last. “The modest improvement in the activity index does not leave much room for optimism about a short-term recovery,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commenting on the data. Taking the current PMIs into account, he expects a decline in gross domestic product (GDP) for the fourth quarter.
According to S&P Global, net jobs were lost in the private sector in the euro area in November for the first time in three years. “However, the sole reason for this was falling employment in the industry, while service providers continued to hire additional staff, albeit at a slower rate,” the statement said. Price pressure also increased here.
Germany’s collective PMI was 47.8 points, France’s was 44.6 and Italy’s was 48.1 points.
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(END) Dow Jones Newswires
December 05, 2023 04:25 ET (09:25 GMT)