Publications
Partners
The Hague - Eurozone business activity and employment figures are showing the biggest growth since May 2011, according to a purchasing managers’ index (PMI) published by British research bureau Markit Economics.
According to the survey, which was published on Monday on the bureau’s website, the Markit Eurozone PMI rose from 53.9 in October to 54.4, indicating the fastest expansion of output in the last four-and-a-half years.
The bureau regularly publishes a PMI, which is generally considered a key scorecard for economic performance. Readings above 50.0 signal an improvement on the previous month, while readings below 50.0 show a deterioration.
The eurozone consists of the 19 states in the 28-member European Union which use the euro as a common currency. No comparable survey was done for the other nine EU states, which use their own currency.
Moreover, the survey indicated that indicators regarding employment, new orders and backlogs of work all showed strong growth. The recovery appears to be led by the service sector, where business activity and new business rose the fastest since May 2011 and employment showed the biggest monthly gain for five years.
Volkswagen impact
Growth in Germany also accelerated in November, the PMI showed. Despite fears, the Volkswagen scandal had no discernible negative influence. In the manufacturing sector growth hit a three-month high, suggesting demand from abroad remained high.
However, France is lagging somewhat behind. Business activity there rose at the slowest rate for three months, reflecting weaker service sector growth.
In comments on the data, Markit chief economist Chris Williamson said: “The improved performance in terms of economic growth and job creation seen in November are all the more impressive given last weekend’s tragic events in Paris, which subdued economic activity in France – especially in the service sector.
“However, with recent comments from ECB chief Mario Draghi highlighting how the central bank remains disappointed with the strength of the upturn at this stage of the recovery, November’s slightly improved PMI reading will no doubt do little to dissuade policymakers that more needs to be done at their December meeting to ensure stronger and more sustainable growth.”
