Courtesy of Mish.
With the markets giddy over the “success” of people spending more money than they can afford on gifts that make little practical sense, other inquiring minds note the Markit Flash Eurozone PMI® shows Eurozone sees ongoing steep decline as services suffers worst month since mid-2009.
Key Points
Flash Eurozone PMI Composite Output Index at 45.8 (45.7 in October). Two-month high.
Flash Eurozone Services PMI Activity Index at 45.7 (46.0 in October). 40-month low.
Flash Eurozone Manufacturing PMI at 46.2 (45.4 in October). Eight-month high.
Flash Eurozone Manufacturing PMI Output Index at 45.9 (45.0 in October). Two-month high.The Markit Eurozone PMI® Composite Output Index was little-changed in November according the flash estimate, up fractionally from 45.7 in October to 45.8. October’s reading had been the lowest since June 2009 and, for the fourth quarter of 2012 so far, PMI data suggest the strongest contraction of output since the second quarter of
2009.PMI vs. GDP
Summary
Activity has now fallen in 14 of the last 15 months, with the exception being a marginal increase seen in January. Output fell sharply in both the manufacturing and service sectors and, while the former saw the rate of contraction ease slightly, the latter saw business activity fall at a rate not seen since July 2009.
The ongoing drop in output reflected a further steep deterioration in new business, which fell at one of the fastest rates seen since mid-2009. A sharper
rate of decline in the services sector was partly offset by manufacturers reporting that their rate of loss of new orders had eased slightly to the weakest for eight months.The plight of the service sector was also highlighted by companies’ expectations for activity in the year ahead dropping to the lowest since March 2009. Sentiment dropped especially sharply in Germany, but improved slightly in France. …
