Eurozone Manufacturing Output Contracts

The Markit eurozone Purchasing Managers’ Output Index was little changed from October, up to 45.8 from 45.7. A reading below 50 indicates contraction.

A sharper rate of decline in the services sector was offset by an easing of the contraction among manufacturers.

The survey also warned of a 0.5% drop in GDP in the fourth quarter.

Official figures released earlier this month showed that the eurozone economy contracted by 0.1% in the third quarter, between July and September.

“The PMI suggests that the downturn is set to gather pace significantly in the fourth quarter. The final three months of the year could see GDP fall by as much as 0.5%,” Chris Williamson, chief economist at Markit said.

“The eurozone economy continued to deteriorate at an alarming pace in November, and is entrenched in the steepest downturn since mid-2009,” he added.

Sentiment among services businesses fell to the lowest since March 2009, said Markit.

via BBC

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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