Euro zone business activity contracted less than initially thought at the end of last year as price pressures eased, according to a survey that suggested the bloc’s recession may not be as deep as expected. .
The final S&P Global Composite Purchasing Managers’ Index (PMI) for the euro zone, seen as a good indicator of economic health, rose to 49.3 in December from 47.8 in November, above the preliminary of 48.8.
While the Index has been below the 50 mark that separates growth from contraction since July, December marked a five-month high. Final data was compiled earlier than usual last month due to the holiday season.
“The euro zone economy continued to deteriorate in December, but the strength of the pullback moderated for the second successive month, pointing to a contraction in the economy that may be milder than initially anticipated,” said Joe Hayes, senior economist at S&P Global Market Intelligence.
“However, there is little evidence in the survey results to suggest that the eurozone economy can return to significant and stable growth at any time.”
A Reuters poll in December indicated that the region’s economy contracted 0.3% in the last quarter and will retreat 0.4% this quarter.
Overall demand declined for the sixth straight month, albeit at a weaker pace than initially thought. The new business index jumped from 45.8 to 47.0, against a preliminary 46.5.
The bloc’s services sector PMI rose to 49.8, compared with 48.5 in November. The preliminary estimate was 49.1.
Source: CNN Brasil
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