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Eurozone PMI edges down in December

Xinhua, December 17, 2015 Adjust font size:

The composite Purchasing Managers Index (PMI) in the 19-country euro area dipped from 54.2 in November to 54.0 in December, but remained well above the 50-point boom-or-bust line, a key business survey showed on Wednesday.

The expansion seen in December was sufficient to complete the strongest quarter of growth in the eurozone recorded by the survey for four-and-a-half years, data monitoring company Markit said.

"The eurozone economy enjoyed a comfortably solid end to 2015, though policymakers are likely to remain disappointed by the relatively modest pace of expansion and lack of inflationary pressures, given the stage of the recovery and the amount of stimulus already in place," Chris Williamson, chief economist at Markit said.

Annual inflation in the single currency bloc stood at 0.2 percent in November, far away from the target of 2.0 percent, Eurostat, the statistical agency of the European Union (EU) said earlier on Wednesday.

However, manufacturing output rose at its fastest rate in 20 months, while services activity continued to rise solidly, albeit at the weakest pace since September.

Both sectors reported that further encouraging growth of new business led to ongoing job creation, pushing the overall rate of employment growth to the highest since May 2011.

Williamson said the upturn in the rate of job creation would hopefully pave the way for unemployment to start falling in 2016.

"The upturn in hiring also indicates that companies are optimistic about prospects for the year ahead and suggests that the pace of GDP growth could lift higher in coming months," he added.

Markit's fresh figure showed a quarterly GDP rise of 0.4 percent in the eurozone, meaning the region grew 1.5 percent in 2015.

Among the largest economies in the region, while readings signaled ongoing solid growth in Germany, France slowed closer to stagnation. It is said that French businesses reported the weakest increase in activity since August.

Regarding to the economy performance in France, Williamson said "a mere 0.2 percent GDP rise at best in the fourth quarter, and a further slowing to near-stagnation in December bode ill for the coming year, especially in the stalling service sector." Endit