EZ Growth Slows in December

Growth in the eurozone economy slowed slightly in December from the previous month, new monthly figures suggest.

The Purchasing Managers’ Index (PMI) figure for December fell to 54, down from November’s figure of 54.2, according to Markit.

Any figure above 50 indicates growth.

Eurozone inflation was also revised up to 0.2% in November, down from the previous month, and down 7.3% compared with the same period the year before.

The greatest price increase in November was for unprocessed food, which rose 2.7% – however, that is lower than October’s rise of 3.2%.

Despite eurozone economic growth dipping in December, the last three months of 2015 saw the strongest quarterly growth in more than four years, Markit said, with the services sector showing its largest monthly gain since November 2010.

The pace of growth in the manufacturing industry sped up at the fastest rate in 20 months, outpacing the growth in the services sector for the first time in more than a year – although costs and wages in manufacturing continued to rise.

Growth in employment in manufacturing was reported to be “stuck at a modest pace”.
Germany enjoyed “ongoing solid growth”, while France “slowed closer to stagnation”.

via BBC

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 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