Eurozone Private Sector Growth Strongest Since 2023

(RTTNews) - Eurozone private sector logged its strongest growth since May 2023 as both manufacturing and service sectors showed expansion in output, final data from S&P Global revealed Wednesday.

The HCOB final composite output index rose to 52.8 in November from 52.5 in the previous month. The reading was above the initial score of 52.4.

The survey showed stronger services momentum in November, while factory output growth moderated to a nine-month low.

The HCOB services Purchasing Managers' Index climbed to 53.6 from 53.0 in the previous month. The flash reading was 53.1.

There was a sustained growth in overall new business in November but this upturn was exclusively driven by demand for services as factory orders decreased marginally.

The volumes of new export business shrank and the pace of decline was unchanged from the previous month.

With the decline in factory orders and increasing services demand, incomplete order volumes dropped more sharply at manufacturers than at service providers.

Payroll numbers grew in November with job creation entirely driven by services firms. Factory staffing capacity shrank to the greatest extent since April.

Eurozone companies were more optimistic towards the year-ahead outlook. Stronger confidence was registered across both monitored sectors in November.

On the price front, input price inflation rose to an eight-month high as a result of renewed increase in purchasing costs. At the same time, output charge inflation eased to a six-month low.

The French economy reported its first expansion in 15 months, while German growth moderated from October's 29-month peak.

Spain reported the second-fastest rate of growth, while the Italian private sector saw activity levels rise at the strongest pace since April 2023.

Germany's private sector growth lost momentum in November but the overall expansion remained strong due to the rise in both manufacturing and services output.

The composite output index hit 52.4 in November, down from 53.9 in October and the initial score of 52.1. The services PMI came in at 53.1, down from a 29-month high of 54.6 in October. The initial reading was 52.7.

France's private sector expanded in November reflecting stronger service sector activity as manufacturing output fell at the fastest pace in nine months.

The final composite output index advanced to 50.4 from 47.7 in October. The reading was revised up from 49.9. The private sector entered expansion territory for the first time since August 2024. The services PMI registered 51.4 in November from 48.0 in the prior month and it was above the flash 50.8.

Italy's private sector expanded at the strongest rate in over two-and-a-half years in November. The composite output index posted 53.8 in November, the highest since April 2023, up from 53.1 in October.

The improvement was focused on the services economy, as growth in manufacturing output was only slight. The services PMI rose to 55.0 from 54.0 in October.

Spain's private sector logged a marked expansion in November. The HCOB composite output index reported 55.1 in November, down from 56.0 in October. The services PMI fell to 55.6 from 56.6 in October.