Eurozone Economic Activity Growth Slows Slightly in November
Business activity in the eurozone slowed slightly in November, a closely watched survey said Friday, after reaching a two-and-a-half-year high last month.
Any reading above 50 indicates growth, while a figure below 50 shows contraction.
The reading was mainly driven by the services sector which grew at its fastest pace in 18 months to reach 53.1 in November, up from 53 last month.
But the manufacturing sector grew at a slower rate, falling to its lowest level since March, registering 50.5 in November compared to 51 in October.
“For months the manufacturing sector of the eurozone has been marooned in a no-man’s land of directionlessness,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said.
“We are still several months, and possibly even several quarters, away from sustained expansion in the manufacturing sector,” he added.
The economist also pointed to a rise in service costs, but said this was not likely to sway the European Central Bank from tightening monetary policy.
“We expect interest rates to remain unchanged in December,” he said.
