Eurozone business activity slumps
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AFP
Oluşturulma Tarihi: Aralık 17, 2008 00:00
BRUSSELS - Business activity in the 15 nations sharing the euro fell in December to a new low in the face of recession although not so much as expected, according to a widely watched survey yesterday.
The eurozone's Purchasing Managers' Index, or PMI, compiled by data and research group Markit, dropped to 38.3 points in December from 38.9 in November, according to an initial estimate. The figure, which brought the index to its lowest in the survey's 10-year history, was better than estimates for a fall to 37.6 points.
"The further decline in the eurozone manufacturing and service sector purchasing managers surveys in December may have been less than feared, but these are still awful surveys," said economist Howard Archer at consultants IHS Global Insight.
Markit said that the index's fall marked the seventh month running of contraction in private sector output, which is indicated by a reading of less than 50 points. The index for activity in the eurozone's vast services sector also retreated, falling to 42 points from 42.5 in November, while manufacturing activity plunged to 34.5 from 35.6 in November.
"Indeed, the eurozone economy is going from bad to worse," said Archer, adding that the surveys suggested the eurozone economy would probably shrink more in the final quarter of 2008 than the 0.2 percent contraction seen in the second and third quarters.
Meanwhile, 12-month inflation in Britain fell by less than expected to 4.1 percent in November from 4.5 percent in October as fuel prices sank, official data showed yesterday.
"Consumer Prices Index (CPI) annual inflation - the government's target measure - was 4.1 per cent in November," the Office for National Statistics said in a statement.
Market expectations had been for a sharper drop to 3.9 percent. CPI annual inflation had surged to a 16-year high point of 5.2 percent in September.
"The largest downward pressure on the CPI annual rate came from transport costs where the price of fuels and lubricants fell this year but rose a year ago," the Office said yesterday. "There was a further large downward pressure from housing and household services due to heating oil prices falling this year but rising a year ago, reflecting movements in the price of crude oil."
"The further decline in the eurozone manufacturing and service sector purchasing managers surveys in December may have been less than feared, but these are still awful surveys," said economist Howard Archer at consultants IHS Global Insight.
Markit said that the index's fall marked the seventh month running of contraction in private sector output, which is indicated by a reading of less than 50 points. The index for activity in the eurozone's vast services sector also retreated, falling to 42 points from 42.5 in November, while manufacturing activity plunged to 34.5 from 35.6 in November.
"Indeed, the eurozone economy is going from bad to worse," said Archer, adding that the surveys suggested the eurozone economy would probably shrink more in the final quarter of 2008 than the 0.2 percent contraction seen in the second and third quarters.
Meanwhile, 12-month inflation in Britain fell by less than expected to 4.1 percent in November from 4.5 percent in October as fuel prices sank, official data showed yesterday.
"Consumer Prices Index (CPI) annual inflation - the government's target measure - was 4.1 per cent in November," the Office for National Statistics said in a statement.
Market expectations had been for a sharper drop to 3.9 percent. CPI annual inflation had surged to a 16-year high point of 5.2 percent in September.
"The largest downward pressure on the CPI annual rate came from transport costs where the price of fuels and lubricants fell this year but rose a year ago," the Office said yesterday. "There was a further large downward pressure from housing and household services due to heating oil prices falling this year but rising a year ago, reflecting movements in the price of crude oil."