Eurozone PMI Reveals Mixed Trends in December (12.16.2024)

The HCOB Flash Eurozone Composite PMI Output Index for December stood at 49.5, marking an improvement from November's 48.3 and reaching its highest point in two months.

The HCOB Flash Eurozone Services PMI Business Activity Index also rose to 51.4, up from 49.5 in November, representing a two-month high. However, the HCOB Flash Eurozone Manufacturing PMI Output Index dropped to 44.5, the lowest in 12 months, down from 45.1 in November. The HCOB Flash Eurozone Manufacturing PMI remained unchanged at 45.2, indicating a consistent rate of decline in manufacturing output.

Contraction in the Eurozone Private Sector

The survey data, collected between December 5-12, showed that the Eurozone private sector continued to contract in December, with business activity declining for the second consecutive month. Companies reduced output amid ongoing decreases in new orders. The pace of job cuts accelerated to its fastest rate in four years as businesses scaled back staffing levels in response to lower workloads. Inflation rates for input costs and output prices also picked up, with charges increasing at a pace that was still above the series average.

Divergent Trends in Manufacturing and Services

The overall drop in business activity was driven by a sharp contraction in manufacturing production, which outweighed the modest recovery in services activity. This marked the twenty-first consecutive month of declining manufacturing output, and the rate of decline was the steepest in a year. While both Germany and France, the Eurozone's largest economies, remained in contraction, the pace of decline eased slightly compared to November. On the other hand, the rest of the Eurozone experienced solid growth, with output expanding at its fastest rate in six months by the end of the year.

Source: SP Global