Eurozone PMI Composite Output Index was 49.1 in December to remain in the contraction zone according to IHS Markit press release. The contraction was for a second successive month and remained below the earlier flash reading of 49.8 despite improving from November’s 45.3 level.
- Final Services Business Activity Index improved from November’s six month low of 41.7 to 46.4
- Manufacturing supported eurozone economic performance, expanding for a sixth successive month and faster than in November.
- Ireland was the best-performing economy, followed by Germany, where growth was underpinned by strong export performance.
- Italy recorded the worst service sector contraction noticeably and more than offset modest growth in manufacturing.
- The fall in regional economic output was linked to a similar-sized drop in incoming new business, which declined for the third month running.
- Price pressures intensified but remained relatively benign while output charges continued to fall.
- There was a growth of new export business for the third time in the past four months which offset service sector declines
- Business optimism also rose to the highest since April 2018 on vaccine developments.
European stocks and the Euro are currently gaining. DAX is up 1.03%, FTSE 100 is up 2.74%, EURUSD is up 0.31%