Economic Buzz: Eurozone Services PMI At 48.5 In November

5 Dec 2022 , 03:30 PM

Output levels across the euro area shrank once again in November, extending the downturn into a fifth month. Although the rate of contraction eased for the first time over this sequence due to a slower fall in manufacturing production, this masked an accelerated decline in the eurozones dominant services sector. Excluding months hit by COVID-19 restrictions, Novembers contraction was the second-sharpest since May 2013. The seasonally adjusted S&P Global Eurozone Composite PMI Output Index posted in sub-50.0 contraction territory for the fifth month in a row during the latest survey period. Although Novembers reading of 47.8 was up from 47.3 in October, and therefore indicated a softer rate of decrease, it marked the longest downturn in the euro area economy since the recession between 2011 and 2013 that was triggered by the eurozone debt crisis. The S&P Global Eurozone Services PMI Business Activity Index signalled a fourth straight month of falling output levels across the service sector in November. At 48.5, this was down fractionally from 48.6 in October and signalled the fastest decline in business activity since February 2021. Weak demand conditions were a major factor behind the drop in output in November. Incoming new business receipts fell for a fifth month running. For the second time in the past three months, the level of work pending completion fell across the eurozone service sector, highlighting reduced pressure on capacity. Employment continued to rise, although the rate of job creation was the weakest in just over a year-and-a-half. Meanwhile, input costs and output charges both increased sharply, although rates of inflation were at their weakest in three months in both instances. Powered by Commodity Insights