(MENAFN– ecpulse) The Eurozone composite of manufacturing and services showed a slightly better expansion in November than previously thought, adding to concerns regarding the pace of growth in the fourth quarter ahead of a meeting by the European Central Bank.
A Composite of both manufacturing and services came at 51.7, beating estimates of 51.5 but was still lower than October’s 51.9, which was the highest since June 2011.
Services PMI dropped to 51.2 from 51.6 in October, however higher than estimates that called for a drop to 50.9.
In Germany, services showed expansion as the index climbed to 55.7, up from October’s reading of 52.7 and the preliminary estimate of 54.5.
Spain’s services indicator climbed to its highest level in over 3 years as it edged up to expansion at 51.5 from 49.6. Italy’s services activity contracted in November as the purchasing managers’ index for declined to 47.2, failing estimates that called for a drop to 50.4 from 50.5.
France’s service activity extended its contraction in November as the purchasing managers’ index came at 48.0, compared with analysts’ estimates that called for an unchanged reading at 48.8.
On Tuesday, data showed the producer prices index (PPI) declined 0.5 percent on month in October, worse than expected. PPI fell 1.4 percent on year; the reading was below expectations and further signaled that the euro zone is not yet in recovery mode.
The data has put Thursday`s European Central Bank`s (ECB) meeting in focus, with analysts awaiting the central bank`s economic forecasts. If the ECB indicates inflation will remain below its target into 2015, it could mean that there may be new liquidity measures next year.
In the last meeting, ECB President Mario Draghi slashed borrowing cost to a record low of 0.25 percent to prevent further price deceleration after CPI inflation dropped to 0.7 percent.
“Our monetary-policy stance will remain accommodative for as long as necessary,” Draghi said.
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