Activity in Eurozone Private Sector Hit 4-Year Low in December

Forex News

Eurozone private sector activity growth slowed in December to its weakest level in more than four years. IHS Markit's Flash Composite Purchasing Managers' Index (PMI) fell to 51.3 in December, from a final November reading of 52.7. The indicator showed its weakest level since November 2014. Economists had expected a modest rise to 52.8.

The manufacturing PMI fell to 51.4 in December compared to expectations for 51.9 and from 51.8 a month earlier. Eurozone services PMI dropped to 51.4 in December from November's 53.4. Economists had forecast a reading of 53.5.

An index measuring output, which feeds into the composite PMI, increased to 51.0 in December from 50.7, which was seen last month. The November reading was the lowest since mid-2013.

The report highlighted that new business inflows almost stalled, job creation slipped to a two-year low and business optimism deteriorated.