Economic Buzz: Eurozone PMI Composite Index Rises To 47.8 In November

23 Nov 2022 , 03:33 PM

November saw business activity fall across the eurozone for a fifth month running, according to flash PMI data. Although the rate of decline remained the second strongest since 2013, excluding COVID-19 lockdown months, the intensity of the downturn moderated in response to a reduced rate of loss of new business, fewer supply constraints and a pick-up in business confidence about the year ahead. Business sentiment nevertheless remained gloomy by historical standards, and demand continued to fall at a steep rate, leading to a pull-back in employment growth during the month. One upside of the weaker demand picture and alleviation of supply constraints was a cooling of price pressures, most notably in the manufacturing sector. Firms costs rose at the slowest rate for 14 months, in turn allowing selling price inflation to moderate, albeit with rates of inflation remaining elevated. The seasonally adjusted S&P Global Eurozone PMI Composite Output Index rose from 47.3 in October to 47.8 in November, according to the preliminary flash reading based on approximately 85% of usual survey responses. The PMI has now registered below the neutral 50.0 level, indicating falling business activity levels, for five consecutive months, albeit with the latest data signalling a moderation in the rate of contraction. Nevertheless, the PMI data for the fourth quarter so far put the eurozone economy on course for its steepest quarterly contraction since late-2012, excluding pandemic lockdown months. Powered by Commodity Insights