Eurozone activity remained high in November for the 11th consecutive month thanks to the boost in services, a trend that could continue given the optimism shown by businesspeople.
The PMI index (Purchasing Managers Index) composed of the total activity of the euro zone, the Hamburg Commercial Bank (HCOB) and S&P Global, published this Friday, 21st, stood at 52.4 points in November, one tenth less than the October indicator (52.5 points), but still above the 50 points that separate growth from contraction.
This “solid increase” in activity is explained by the services sector, which increased activity at the fastest rate in a year and a half, while the industrial sector only experienced a slight improvement.
While Germany showed some slowdown in activity and France, some stabilization, the remaining euro zone economies grew at the fastest pace since April 2023.
The report reveals a slowdown in orders – which remain positive because services compensated for the decline in industry -, with those destined for export again in negative.
In this context, employment remained stable – it grew “slightly” in services, but in industry it has accumulated two and a half years of declines – and these staff were sufficient to meet pending orders, which decreased in November.
With regard to prices, although the cost of production factors increased “intensely” in November, the growth in prices charged slowed to the smallest increase since April 2021.
Despite this, companies were optimistic about the future, especially in industry, where they reached the highest level in five months.