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United Kingdom S&P Global Services PMI came in at 51.3, above expectations (50.5) in November

United Kingdom S&P Global Services PMI came in at 51.3, above expectations (50.5) in November

United Kingdom S&P Global Composite PMI came in at 51.2, above expectations (50.5) in November

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Eurozone Services PMI final rose to 53.6 in November from 53.0, marking a 30-month high and reinforcing the sector’s position as the main driver of regional growth. Composite PMI also improved to 52.8 from 52.5—another 30-month high—indicating that services strength more than compensated for continued manufacturing softness. Country-level PMI Composite showed broad participation: Ireland led […]

The post Eurozone PMI composite finalized at 30-month high, mild Q4 acceleration expected appeared first on ActionForex.

Eurozone HCOB Services PMI came in at 53.6, above expectations (53.1) in November

• Prior 53.0
• Composite PMI 52.8 vs 52.4 prelim
• Prior 52.5

Better revisions in both France and Germany sees the Eurozone readings above for both the services and composite prints come in at fresh 30-month highs. That points to a relatively solid economic expansion in the region in looking to end the year, which will give the ECB much breathing room in justifying the pause to rate cuts. HCOB notes that:

“The service sector in the eurozone is showing clear signs of recovery. The strong performance in the service sector was
even enough to more than offset the weakness in the manufacturing sector, meaning that economic output in the eurozone
grew slightly faster in November than in the previous month. We therefore expect the growth rate in the final quarter of the
year to show a slight acceleration.

“The eurozone services sector is now growing for the sixth month in a row and at its fastest pace since May 2023. At 53.6,
the index level is far from a boom in historical terms, which tends to start in the high 50s. However, it is fair to say that
performance is relatively robust. The geographical breadth of the recovery supports this assessment. For the coming year,
we expect positive stimulus from Germany’s expansionary fiscal policy and Spain’s sustained high economic growth. In
France, the fragile political situation argues against increasing momentum. In Italy, there is still hope for effects from the EU
Next Generation funds, but these are likely to be felt primarily in the construction industry and only indirectly by service
providers.

“The inflation rate in the service sector, which the ECB is monitoring with particular attention, has weakened significantly
again in terms of sales prices. At the same time, cost inflation is higher, which is likely to be related to wage growth that is
slowing but still above average. All in all, the ECB is likely to feel supported in its clearly communicated line of leaving
interest rates unchanged at the upcoming central bank meeting.”

This article was written by Justin Low at investinglive.com.

Eurozone HCOB Composite PMI registered at 52.8 above expectations (52.4) in November

The Pound Sterling (GBP) trades higher against its major currency peers, except antipodeans, on Wednesday.

• Prior54.6
• Final Composite PMI 52.4 vs 52.1 prelim
• Prior 53.9

Key findings:

• Further, albeit slower, increases in new work and employment

Comment:

Commenting on the PMI data, Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:

“The service sector is likely to keep Germany’s growth just above zero in the fourth quarter. However, momentum in this
sector slowed in November. One reason for this is likely to be that the consumption-sensitive service sector is suffering from
the cautious spending behaviour of households. The fact that the recession in the manufacturing sector deepened again in
November, as signalled by the PMI, thereby also affecting industry-related service companies, is not helpful either.
Conversely, however, it can also be said that service providers are proving to be relatively resilient in the face of the difficult
environment.

“The continued growth in new business suggests that business activity in the service sector will also grow in the last month
of the year. For the coming year, the expansionary fiscal policy, which is also likely to be accompanied by higher investment
volumes, should have positive spillover effects on the service sector. The very modest growth of this sector this year,
estimated at 0.4 percent, based on official figures for the first three quarters of the year, should therefore accelerate
significantly to over 1 percent in the coming year.

“On the price front, the good news is that cost inflation among service providers has eased somewhat. However, companies
were obviously forced to pass on the lower inflationary pressure to their customers, as sales prices also rose at a slower
rate. This shows that companies were unable to increase their profit margins.”

This article was written by Giuseppe Dellamotta at investinglive.com.