Business activity in the eurozone accelerated last month, but the recovery may be temporary as demand growth slowed and worries about Omicron plummeted.
The composite PMI rose to 55.4 points in November from 54.2 points in October, lower than initially estimated at 55.8 points, but still higher than the 50 points separating growth from recession.
“An improvement in the growth rate signaled by the eurozone PMI seems likely to be short-lived,” said IHS Markit chief economist Chris Williamson.
“Not only has demand growth weakened, but business expectations for future growth have also diminished as concerns about the pandemic have intensified again,” he added.
The start-up index fell to 54.7 points from 55.1 points, the lowest level since April.
The final PMI for the services sector rose to 55.9 points from 54.6 points, although it remained lower than the initial estimates for 56.6 points.
But the business expectations index fell to 66.7 points from 69 points, which is the lowest level since February.
“With the data gathered before the news about the Omicron variant, the climate for the short-term outlook will be even more shaky,” Williamson said.
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Source From: Capital
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