By Introduction
According to recent data from a purchasing managers’ survey, economic activity in the eurozone contracted for the seventh consecutive month in December. The pace of contraction was even stronger than in November, driven by weakening demand and a gloomy economic outlook.
Flash Eurozone Composite PMI Output Index
The HCOB Flash Eurozone Composite PMI Output Index, which measures activity in both the manufacturing and services sectors, fell to 47.0 in December, down from 47.6 in November. This reading represents a two-month low and indicates a more pronounced contraction compared to the previous month.
Below Expectations
Economists had expected the index to reach 48.2, according to a poll conducted by The Wall Street Journal. However, the actual reading fell short of these expectations. Both the services and manufacturing sectors performed below the anticipated levels.
Concerns Over Eurozone Recovery
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commented on the disappointing figures, stating that they “paint a disheartening picture as the Eurozone economy fails to display any distinct signs of recovery.”
Decline in France and Germany
In addition to the overall Eurozone contraction, the composite index for the purchasing managers’ survey in France reached a 37-month low, while Germany experienced a two-month low.
As economic contraction continues for the seventh consecutive month, concerns are mounting over the Eurozone’s ability to recover.
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