2019.12.0408:27:00UTC+00Eurozone Private Sector Logs Modest Growth

The euro area private sector growth remained the lowest in six-and-a-half years in November, signaling modest expansion for the fourth quarter, final survey data from IHS Markit showed Wednesday.

The composite output index held steady at 50.6 in November. The reading was slightly above the flash estimate of 50.3.

The services economy again remained the primary driver of overall growth. Meanwhile, manufacturing contracted further in November.

The final services Purchasing Managers' Index fell to 51.9 from 52.2 in the previous month. The flash estimate was 51.5.

The survey data are indicating GDP growth of just 0.1 percent in the fourth quarter, with manufacturing continuing to act as a major drag, Chris Williamson, chief business economist at IHS Markit said.

"The near-stalling of the economy has been accompanied by some of the weakest price pressures we've seen in recent years, which threatens to keep inflation well below the ECB's target in coming months and adds to the likelihood of further policy stimulus early next year," Williamson added.

France remained the best-performing country in terms of output growth, followed by Spain. Meanwhile, Italy and Germany registered reductions in private sector output.

The French private sector logged a slight slowdown in November reflecting a softer increase in services. Meanwhile, manufacturers reported the fastest growth since June.

France's final composite output index slid to 52.1 in November from 52.6 a month ago. The flash reading was 52.7. At the same time, the services PMI dropped to 52.2 from 52.9.

Germany's private sector remained in contraction territory in November. The composite PMI climbed to 49.4 from 48.9. The score was also above the flash 49.2 but a reading below 50 indicates contraction.

The service sector remained stuck in a slow growth phase in November. The PMI rose slightly to 51.7 from 51.6 in the previous month. The initial estimate was 51.3.