Eurozone Economic Growth Expanded in November as Prices Soared

Source: IHS Markit

Eurozone business growth unexpectedly grew this month as consumers beat off another wave of COVID-19 infections and new restrictions as price pressures rose again. Euro Stoxx 50 down -0.93%, EUR USD up +0.25%

• IHS Markit’s Flash Composite Purchasing Managers’ Index rose to 55.8 in November from 54.2 in October.
• Chris Williamson, a chief business economist at IHS Markit, stated that a stronger expansion of business activity in November beat economists’ expectations of a slowdown but is unlikely to protect the bloc from suffering a slow growth rate in Q4.
• Supply chain constraints resulting from the pandemic led to the increase in the composite input prices index rose to 75.9 from 73.2.
• Meanwhile, optimism is falling as renewed lockdowns are likely to have an adverse impact on services. The business expectations index dropped to 66.6 from 69.0.
• Manufacturing activity remained robust, and the factory PMI expanded to 58.6 from 58.3.
• Demand is still strong, and factories were able to pass on costs to customers, increasing output prices.