Eurozone PMIs Disappoint Raise Deeper Stagnation Questions

Private-sector output in the euro zone failed to live up to expectations for November, fueling concerns that the region’s economic recovery is faltering.

Euro zone November flash composite purchasing manager’s index (PMI) data from Markit came in at 51.4, below forecasts by analysts polled by Reuters of 52.3, and below October’s final reading of 52.1.
Carsten Brzeski, chief economist at ING, said Thursday’s figures “cannot simply be ignored.”

“They fit into the picture of an economy which is struggling to gain momentum and leave stagnation behind,” he said.
Activity in the region’s manufacturing sector fell to 50.4, down from 50.6 in October while in the services sector there was a drop to 51.3, down from 52.3 in October.
The figures could put more pressure on the European Central Bank to increase stimulus measures, such as buying government bonds, a move that Germany has so far opposed.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza