Report shows recovery split in Europe

LONDON, Dec. 1 (UPI) -- The Markit indexes of manufacturing activity in Europe showed France and Germany pulling away from the rest of the pack in the 16-nation eurozone.

The headline Purchasing Managers Index for the eurozone rose to 55.3 in November, up from 54.6 in October.

Numbers above 50 indicate growth, while below 50 indicates contraction.

Overall, the eurozone's PMI reached a four-month high showing growth for 14 consecutive months.

With gains in new orders and output, the PMI reached a three month high in Germany and a 10-year high in France.

The PMI also rose in the Netherlands and Ireland, but fell in Italy, Austria and Spain, where the PMI dropped to a break-even 50, Markit reported Wednesday.

In Greece, the PMI "remained well below the no-change mark," the report said.

"The performances in Italy, Spain, Ireland and Greece were lackluster in comparison" to France and Germany, the report said.

"November's PMIs showed that manufacturing conditions picked up at greatly improved rates in Germany and France. … However, conditions are far less rosy in other parts of the eurozone," Markit Chief Economist Chris Williamson said.

"The data highlights how domestic demand holds the key to these euro country growth divergences," he said. "Austerity measures and growing political uncertainties led to weaker domestic order book inflows, offsetting any export gains and subduing recoveries in all cases except France and Germany," he said.