Eurozone business is growing with the slowest pace in nearly two years

Eurozone business is growing with the slowest pace in nearly two years after the slowdown in the industry spread to the services sector. The results are likely to be disappointing for the management of the European Central Bank, which will put an end to its bond purchasing program in less than a month.

The Eurozone PMI, which is perceived as a good indicator of economic performance, fell to 52.7 points in November from 53.1 points a month earlier. This is also the lowest level since September 2016.

However, this is above the preliminary calculations to drop to 52.4 points. The values ​​above the threshold of 50 points indicate growth.

“The Eurozone’s final PMI for November was higher than pre-reading, but still points to a moderate GDP growth of around 0.3% in the fourth quarter, suggesting that the region is still experiencing an economic slowdown”, according to the IHS Markit Chief Business Economist, Chris Williamson.

According to the analysts, the economic growth of the Eurozone will recover slightly and will grow by 0.4% this quarter.

However, the optimism of purchasing managers is at its lowest level for almost four years, giving little chance of improvement by the end of 2018. The index for future production declined in November by one point to 59.5 points.

The industrial activity also increased at its slowest pace in more than two years in November. According to the data, the PMI on services fell to a 25-month low of 53.4 points from 53.7 points, pulled down by slowing growth in new businesses.

The indicator measuring new work in the service sector fell to 53.4 points from 53.9 points – the lowest level of more than two years.