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| Eurozone recession likely – S&P | Eurozone recession likely – S&P |
| (32 minutes later) | |
| The Purchasing Managers’ Index has been in decline for seven consecutive months | |
| Business activity in Europe’s 20-nation single currency bloc continued to contract at the end of 2023, as a downturn in the dominant services industry stretched into the final month of the year, data compiled by S&P Global has revealed. | Business activity in Europe’s 20-nation single currency bloc continued to contract at the end of 2023, as a downturn in the dominant services industry stretched into the final month of the year, data compiled by S&P Global has revealed. |
| The Flash Composite Purchasing Managers’ Index (PMI) for the bloc, a measure of manufacturing and services activity, was revised up for December to match November's 47.6 after a preliminary estimate of 47.0. However, the gauge remained below the 50 mark, which separates growth from contraction, for a seventh consecutive month. | |
| The data shows that the Eurozone saw a contraction of 0.1% in the third quarter of 2023, and likely shrank again last quarter, having met the technical definition of a recession. | |
| Meanwhile, the Services Business Activity Index moved up to a five-month high of 48.8 compared to 48.7 recorded in November, as demand was seen to further weaken in the euro area. | Meanwhile, the Services Business Activity Index moved up to a five-month high of 48.8 compared to 48.7 recorded in November, as demand was seen to further weaken in the euro area. |
| “Activity levels were constrained at the end of the year by a further weakening of demand conditions. The latest survey data signaled a further solid drop in new business receipts by both eurozone manufacturers and service providers,” the report reads. | “Activity levels were constrained at the end of the year by a further weakening of demand conditions. The latest survey data signaled a further solid drop in new business receipts by both eurozone manufacturers and service providers,” the report reads. |
| Although the decline in demand for services slightly eased in December with the new business index rising to a five-month high of 47.1 from 46.7, it remained below 50 for a sixth month. | Although the decline in demand for services slightly eased in December with the new business index rising to a five-month high of 47.1 from 46.7, it remained below 50 for a sixth month. |
| “It's not quite recession territory yet for services, but the vibe is far from growth-oriented. There are a lack of clear signals indicating an imminent return to robust expansion,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. | “It's not quite recession territory yet for services, but the vibe is far from growth-oriented. There are a lack of clear signals indicating an imminent return to robust expansion,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. |
| “The Composite PMI... is sounding the recession alarm for the euro zone though,” he added saying his economic modelling forecast a contraction in the fourth quarter. | “The Composite PMI... is sounding the recession alarm for the euro zone though,” he added saying his economic modelling forecast a contraction in the fourth quarter. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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