The index Eurozone Manufacturing PMI published by S&P Global has risen 7 tenths in the preliminary reading for November. The indicator has jumped to 43.8 from 43.1 in October. This is the highest level reached by the manufacturing sector in six months. The result improves market expectations, since a slight increase to 43.4 was expected.
The services PMI has gained four tenths in the advanced reading for November, rising to 48.2 from 47.8, its highest level in two months. The figure is above the consensus forecast, which predicted a decline to 48.1.
Business activity in the euro area continued to decline during November, amid a further strong decline in new orders. Both production and new business have declined in each of the last six months. That said, in each case the pace of contraction was gentler than in the previous period of the poll. Surplus capacity as a result of declining demand and relatively weak confidence in the outlook led companies to reduce staffing levels for the first time since early 2021, while purchasing activity and inventories also fell.
The rate of input cost inflation hit a six-month high in the middle of the final quarter of the year, and the pace of selling price increases also accelerated despite continued reductions in new orders. Inflation was mainly focused on the services sector, as manufacturing sector prices continued to fall.
Euro reaction
EUR/USD reacted higher to improved German data, stretching more than 20 pips to 1.0931, a new two-day high. After the Eurozone PMI data, the pair has fallen although it remains positive, trading at the time of writing above 1.0911 and gaining 0.22% daily.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
