Eurozone business index shows slowing growth

Nov. 21, 2013 at 9:53 AM
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BRUSSELS, Nov. 21 (UPI) -- The composite purchasing managers index for business in the eurozone slid for the second consecutive month in November, Markit Economics reported Thursday.

Markit said the flash estimate for the composite index, which could be revised later, dropped marginally from 51.9 to 51.5.

The composite index is a weighted average of the manufacturing output index and the services business activity index.

Numbers in the index above 50 indicate growth, while numbers lower than 50 indicate contraction.

Markit said new orders for service-oriented firms rose marginally and hit the fastest pace of growth in three moths among manufacturers.

For service companies, the backlog of work orders dropped for the 29th consecutive month. For manufacturing, the backlog of work rose for the third time out of the past four months.

The employment index contracted for both service and manufacturing sectors, dropping for the 23rd consecutive month.

"Some encouragement must be gleaned from the PMI signalling expansion of the eurozone economy for a fifth successive month in November, but the average reading over the fourth quarter so far is signalling a very modest 0.2 percent expansion of [the] gross domestic product across the region, and it looks like momentum is being lost again," said Market Chief Economist Chris Williamson.

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