2017.12.1423:44:00UTC+00Eurozone Businesses to Begin 2018 Near Seven-Year Peak

Businesses across the eurozone are closing this year on a near seven-year peak, as demand and price pressures increased while forward-looking indicators pointed to a busy start to 2018.

The results of a key private sector survey showed that factories are recording their best month in the survey's two-decade history while services activity also picked up.

IHS Markit's composite flash Purchasing Managers' Index for the euro zone increased to 58.0 in December, its highest since February 2011.

Germany and France PMIs also showed the bloc's two biggest economies expanding strongly.

According to IHS Markit, the euro zone economy as a whole likely grew 0.8 percent in the fourth quarter.

Growth in new business hit a level last seen in more than a decade, as the new orders sub-index increased to 57.9 from 57.3. Companies raised headcount at one of the quickest rates in the survey's near 20-year record too.

The PMI covering the bloc's dominant service industry increased to 56.5 from November's 56.2, the strongest since April 2011. This pulled up the business expectations gauge to a three-month peak of 65.6 from 64.8.

A manufacturing PMI also jumped to a record peak of 60.6 from 60.1.

An index measuring output, which feeds into the composite PMI, increased to 62.0 from 61.0 -- the highest since April 2000. It has only been above that level once before.