Eurozone Einkaufsmanagerindex Composite

The HCOB Eurozone Composite PMI fell to 48.1 in November of 2024 from 50 in the previous month, missing expectations of 50 to mark the sharpest contraction in the bloc’s private sector activity according to preliminary estimates. The result consolidated the poor momentum for demand in the Eurozone’s largest economies, with fresh weakness in the previously-resilient service sector (49.2 vs 51.6 in October) magnifying the impact of a deeper contraction for manufacturers (45.2 vs 46). Aggregate output was lower for the second time in three months, with both sectors recording contractions for the first time this year. This was due to sharp drops in new orders, as the depletion of backlogs could not sustain activity. Consequently, the lower demand for capacity drove firms to shed their workforce. On the price front, input cost inflation rose to a three-month high, accelerating output charges. Looking forward, confidence in the year ahead waned.