News Line

Euro area: the increase in activity continues

November 23, 2009

Good news for the eurozone. The PMI purchasing managers, released Monday by the company Markit, reported an increase in activity in November. The composite index reached 53.7 points (against 53 in October), slightly above market expectations, with 53.2 points for the services sector (52.6 in October) and 51 points for the manufacturing sector (50, 7 in October and 49.3 in September).

For the French private sector in particular, the composite index reached 59.8 points (against 58.6), a higher three years. The services sector is one that registers the highest increase, from 57.7 to 60.4 points in November.On this month, the survey highlights "the strongest increase in the volume of new business for two years that respondents attributed to the continuous improvement of business conditions".

Note that an index above 50 corresponds to an increase in activity, as a figure below 50 represents contraction.

"However, activity levels remain significantly below those recorded before the crisis"

"Recent survey data confirm that the recovery is continuing, in November, the French private sector. However, activity levels remain well below those recorded before the crisis, companies continue to give substantial discounts to obtain new contracts and the situation remains worrying, "nuance Paul Smith, economist at Markit.

The monthly survey of Markit and Company executives and buyers from France (FASC) is made from 750 companies in industries and services. The final indices will be published in early December.

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