Euro Zone Busi­ness Growth Slows Down

Iran News - - INTERNATIONAL -

LON­DON (Reuters) - Euro zone busi­ness growth was at its weak­est pace in over two years last month as a man­u­fac­tur­ing-led slow­down showed fur­ther signs of spread­ing to the ser­vice in­dus­try, a sur­vey showed on Wed­nes­day.

The down­beat sur­vey re­sults will likely make dis­ap­point­ing read­ing for pol­i­cy­mak­ers at the Euro­pean Cen­tral Bank who in­tend to bring an end to their 2.6 tril­lion euro as­set pur­chase pro­gram in less than a month.

IHS Markit’s Euro Zone Com­pos­ite Fi­nal Pur­chas­ing Man­agers’ In­dex (PMI), seen as a good guide to eco­nomic health, fell to 52.7 in Novem­ber from Oc­to­ber’s 53.1, its low­est since Septem­ber 2016. That was how­ever above a 52.4 pre­lim­i­nary es­ti­mate and com­fort­ably ex­ceeded the 50 mark that sep­a­rates growth from con­trac­tion.

“The fi­nal euro zone PMI for Novem­ber came in higher than the flash read­ing but still only points to mod­est GDP growth of ap­prox­i­mately 0.3 per­cent in the fourth quar­ter, sug­gest­ing the re­gion re­mains stuck in a soft-patch,” said Chris Wil­liamson, chief busi­ness econ­o­mist at IHS Markit.

A Reuters poll last month had pre­dicted the bloc’s eco­nomic growth would bounce back some­what and ex­pand

0.4 per­cent this quar­ter.

But pur­chas­ing man­agers were at their least op­ti­mistic for al­most four years, sug­gest­ing lit­tle chance of im­prove­ment as 2018 draws to a close. The fu­ture out­put in­dex fell in Novem­ber to 59.5 from 60.5.

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