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.