The downturn in euro zone business activity eased slightly in November offering a glimmer of hope the expected recession may be shallower than feared, but consumers still cut spending amid a cost of living crisis, a survey showed on Wednesday.
However, November is the fifth month the index has been below the 50 mark separating growth from contraction. However, in France activity contracted for the first time since February 2021 as lower new orders weighed on the euro zone’s second-biggest economy. Activity in the bloc’s dominant services industry declined again, with the headline index matching October’s 20-month low of 48.6. The Reuters poll had predicted a fall to 48.0.
An index measuring output, which feeds into the composite PMI, jumped to 45.7 from 43.8, however some of that came from completing backlogs of work.