Euro zone business activity fell again in Nov, stoking recession fears -PMI
By Jonathan Cable
LONDON (Reuters) -The downturn in euro zone business activity eased in November but remained broadbased, suggesting the bloc's economy will contract again this quarter as consumers continue to rein in spending, a survey showed.
Last quarter the economy contracted 0.1%, official data has shown, and Thursday's flash Composite Purchasing Managers' Index (PMI) for November indicated the 20-country currency union is on track to do so again in the fourth quarter.
HCOB's PMI, compiled by S&P Global and seen as a good guide of overall economic health, ticked up to 47.1 from October's near three-year low of 46.5 but remained firmly below the 50 mark separating growth from contraction.
A Reuters poll had predicted a more modest lift to 46.9.
«Ongoing weakness in the euro zone business surveys suggests a recession is on the horizon. The manufacturing sector remains in the mire, while services continue to contract,» said Mike Bell at J.P. Morgan Asset Management.
Still, Germany's downturn showed signs of easing with both manufacturing and services activity falling more slowly than in previous months, raising hopes a recession in Europe's largest economy might be shallower than expected
France also saw some improvement but business activity contracted again this month — and more than predicted in a Reuters poll — as demand for goods and services in the euro zone's second-biggest economy deteriorated.
French industry morale was stable in November, official statistics agency INSEE reported earlier on Thursday.
In Britain, outside the European Union, companies reported a marginal return to growth after three months of contraction but the downturn in orders continued in the face of higher interest rates and weak demand.
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