Eurozone PMI Falls to 16 Month Low

Business activity in the euro zone fell to a 16-month low in November, according to data released on Wednesday, confirming fears that the region’s economy is faltering.
Final euro zone composite Purchasing Manager’s Index (PMI) data from Markit came in at 51.1 in November, below flash estimates of 51.4 released last month. It marks a fall from October’s final reading of 52.1.

The composite reading measures both manufacturing and services activity, with the 50-point mark separating contraction from expansion.

The figures could put more pressure on the European Central Bank (ECB) to increase stimulus measures ahead of its next monetary policy announcement on Thursday. There is growing pressure on the bank to start buying government bonds, although Germany has opposed the move to date.

The euro zone data was preceded by disappointing services PMI figures for Germany and France, the euro zone’s largest and second-largest economies respectively.

The slowdown across the 18-country region reflected weakness in new order inflows, as new business fell for the first time since July last year. Job creation also remained near-stagnant, Markit said.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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