Euro area business activity accelerates in November

By Gokhan Ergocun

ISTANBUL (AA) – Eurozone business activity growth speeded up in November after hitting the six-month low last month, a London-based global data company said on Tuesday.

"The upturn was accompanied by a further marked increase in inflationary pressures during the month, as firms' costs and average selling prices charged for goods and services both rose at record rates," IHS Markit said.

In November, eurozone composite purchasing managers index (PMI) rose for the first time in four months, reading 55.8 versus 54.2 in October, according to the company's flash estimate.

Manufacturing and services PMI increased to 58.6 and 56.6, respectively, this month from 58.3 and 54.6 in October.

Chris Williamson, chief business economist at IHS Markit, said that figures defied economists' slowdown expectations.

He cautioned though: "The manufacturing sector remains hamstrung by supply delays, restricting production growth to one of the lowest rates seen since the first lockdowns of 2020.

"The service sector's improved performance may meanwhile prove frustratingly short-lived if new virus fighting restrictions need to be imposed."