Eurozone recovery continues

From Markit overnight:


Flash Eurozone PMI Composite Output Index(1) at 52.1 (51.7 in November). Three-month high.
Flash Eurozone Services PMI Activity Index(2) at 51.0 (51.2 in November). Four-month low.
Flash Eurozone Manufacturing PMI(3) at 52.7 (51.6 in November). 31-month high.

The grinding Eurozone recovery continues. It’s not going to light up the world but the EZ is so big that reducing its drag is a useful contribution to world growth.

The internals were mixed:

Growth of new orders also accelerated, showing the biggest jump in demand for goods and services since June 2011.


Manufacturing led the upturn, with output rising for the sixth successive month and the rate of increase hitting the highest since April 2011. New orders at goods producers likewise rose for a sixth month, also showing the fastest expansion since April 2011. Order book growth was fueled by rising exports, growth of which continued to run at the fastest clip since early-2011.

It was a different story in services. Although activity in the service sector rose for a fifth straight month in December, the rate of growth slowed for the third successive month from the already weak pace seen in November, resulting in the smallest monthly expansion since August. Growth of new business also remained only very modest in the service sector, easing slightly in December as demand from many domestic markets within the single currency area remained lacklustre, hindered in the case of consumer services by high unemployment.

Employment is still falling everywhere but Germany but it will follow the data up. Full report here.

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