Eurozone November final services PMI 48.5 vs 48.6 prelim

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Eurozone November final services PMI 48.5 vs 48.6 prelim

<ul><li>Composite PMI 47.8 vs 47.8 prelim</li></ul><p style="" class="text-align-justify">Euro area economic activity contracts once again for a fifth month running, with overall conditions pointing to a recession in the offing. Business confidence improved slightly but remains subdued when viewed in the bigger picture and the same can be said for inflation pressures, which eased slightly in November but remains high historically. S&P Global notes that:</p><p style="" class="text-align-justify">"A fifth consecutive monthly falling output signalled by the PMI adds to the likelihood that the eurozone is sliding into recession. However, at present the downturn remains only modest, with an easing in the overall rate of contraction in November means so far the region looks set to see GDP contract by a mere 0.2%. </p><p style="" class="text-align-justify">"Manufacturers are seeing some benefits of improved supply chains and the service sector, while still in decline amid the cost-of-living squeeze, has so far not suffered to the degree that many were expecting. </p><p style="" class="text-align-justify">"With the surveys also bringing signs of <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_2" class="terms__main-term">inflation</a> having peaked, the headwind on demand from rising prices should also start to ease in coming months, barring severe weather over the winter, hinting that any recession may be both brief and relatively mild. That said, energy prices could spike higher amid adverse weather in the coming months, which would not only hit spending power but could threaten production capacity at energy-intensive industries, under which scenario the risks to economic growth would shift clearly to the downside."</p>

                This article was written by Justin Low at forexlive.com.

Source: Eurozone November final services PMI 48.5 vs 48.6 prelim

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