(Finance) – According to flash PMI data for December, the decline in the eurozone extended for the sixth consecutive monthalthough the rate of decline in activity slowed for the second consecutive month, thanks to the reduction in the order loss rate, improving supply conditions, easing price pressures and rising business confidence.
According to preliminary estimates by S&P Global, the index manufacturing PMI it rose to 47.8 points in December from the previous 47.1, exceeding the 47.1 points expected by analysts. It also strengthens the Services PMI, coming in at 49.1 points versus 48.5 previously and 48.5 points expected. Consequently the Composite PMI it goes to 48.8 points from the previous 47.8 (it was expected at 48 points).
Among the major European economies, the Germany shows an improvement in the manufacturing PMI to 47.4 from 46.2, above the consensus of 46.3 points, and an increase in the services PMI to 49 from 46.1 (above the expected 46.3). In Francethe manufacturing PMI moved to 48.9 from 48.3 (48.2 points consensus) and the services PMI to 48.1 from 49.3 (49.1 was expected).
“While the further decline in activity in December signals a strong possibility of a recession, the survey also suggests that any downturn will be milder than imagined a few months ago – commented Chris WilliamsonChief Business Economist at S&P Global Market Intelligence – Fourth-quarter data is consistent with a quarterly GDP contraction of just under 0.2% and leading trend indicators currently point to hope for a further reduction in the rate of contraction in first quarter”.
“The prospects for inflation are particularly encouragingwith the supply chain improving for the first time since the start of the pandemic and business costs reporting growth at a sharply reduced pace reflecting lower rates of increase in tariffs charged for both goods and services,” he added.