Eurozone growth reaches three-month high

24 November 2010
Construction growth improves, PMI shows Growth spurt by Eurozone manufacturing PMI
Manufacturing posts stronger growth figures
Purchasers signal a fall in Eurozone retail sales
Construction growth slowest since recession

24 November 2010 | Adam Leach

France and Germany boosted the expansion of the Eurozone economy to a three-month high in November, according to procurement managers.

The Markit Flash Eurozone PMI, which is based on early replies to its survey of purchasing managers, rose to 55.4 in November from 53.8 in October. A score of 50 represents no change from the previous month.

The strongest sector was manufacturing, which reached a four-month high of 55.4 from 54.6 in October. Manufacturing output was also up, at 55.9 in November compared with 54.7 last month.

Also anchoring the growth was the first increase in new orders for three months.

Chris Williamson, chief economist at Markit, said: “The Flash PMI readings for November indicate that the Eurozone regained some of the growth momentum that had been lost since July’s peak.”

Less positive were the figures for other countries in the Eurozone, which showed modest growth, with manufacturing only slightly outperforming services activity.

Williamson said: “Growth remains very unbalanced, led by a renewed surge of output and employment in Germany – which is driving economic growth at almost twice the average – while the periphery continues to struggle with extremely tough conditions.”

He added: “Growth outside France and Germany appears to be stagnating at best.”

Eurozone economic growth in the final quarter looked unlikely to exceed 0.5 per cent, said Williamson.

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