economic contraction slows in November

Europe 1 with AFP

Inflation seems to be easing in the euro zone in November compared to October, as are supply difficulties. Despite everything, the economy is contracting for the fifth consecutive month according to the Flash PMI index, indicating that activity is still in decline.

Economic activity in the eurozone contracted slightly less sharply in November than in October, while inflationary pressures showed signs of easing, according to the Flash PMI index published on Wednesday by S&P Global. The index, calculated on the basis of business surveys, recovered slightly to 47.8, after 47.3 in October. The economy is still contracting for the fifth consecutive month. A figure below 50 signals a decline in activity.

Less severe supply difficulties

The data for the fourth quarter assumes “a quarterly GDP contraction of just over 0.2%,” S&P economist Chris Williamson said in a statement. “Some timid signs of improvement are emerging from the latest survey results, however, including a slowdown in the pace of contraction compared to October,” he said. “The high price pressures (…) are showing signs of easing, particularly in the manufacturing sector,” he added.

“Supply difficulties also seem to be easing (…) The mild temperatures have also made it possible to somewhat allay fears relating to possible energy shortages during the winter period,” he further underlined.


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