Eurozone activity to end on a high note

BUSINESS ACTIVITY across the eurozone looks set to end 2017 on a high note after a busy November, according to a survey giving the latest evidence the bloc’s economy was a star performer this year.

Growth accelerated last month as firms struggled to meet booming demand – in stark contrast to Britain, where the dominant services sector lost some momentum as firms worry about what leaving the European Union will mean for them.

“It confirms that the eurozone economy remains in rude health and the final quarter of the year is going to be very strong. We see a lot of momentum,” said Angel Talavera at Oxford Economics.

Forward-looking indicators in the survey suggest the momentum will be maintained this month.

IHS Markit’s final composite Purchasing Managers’ Index for the eurozone, seen as a good guide to growth, was confirmed at an earlier flash reading of 57.5, up from October’s 56.0. The PMI scaled its highest level since April 2011.

In less upbeat data, eurozone retail sales fell more than expected in October, data showed.

“Warm weather weighed on clothing sales and therefore overall retail sales in October, but November’s rise in consumer confidence to a 16-year high suggests that sales growth rebounded last month,” said Stephen Brown at Capital Economics.