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Eurozone services activity slows in November

Eurozone services activity slows in November

Services activity in the eurozone retreated in November, but was better than initial estimates last month, with performance shrinking in Germany and Italy.

Data released by Market Research on Wednesday revealed that the eurozone’s service final PMI recorded 51.9 points in November, down from 52.2 the previous month.

Analysts estimated that service activity in the euro area would remain unrevised at 51.5 last month, the same as the initial estimates.

While the service index's performance is still above the 50-point separating expansion from contraction, the reading remains among the lowest in 6 1/2 years.

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The data showed that the stagnation of new business limited private sector growth in November, but the service sector remained the main driver of overall growth, although its positive contributions have declined slightly since October.

The Composite PMI (which includes the performance of the manufacturing and services sectors) was 50.6 points last month, a better reading than the initial estimate of 50.3 points, compared to 50.6 in October.

France was the best performer in the euro zone, followed by Ireland and Spain, while Germany continued to contract to be the worst performer, where Italy recorded its first contraction in six months.

Meanwhile, the euro traded lower against the U.S dollar at 1.1071 after recording a two-week top at 1.1093 on Tuesday.

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