Area euro - PMI Servizi

The IHS Markit Flash Eurozone Services PMI edged up to 52.4 in December of 2019 from 51.9 in November, beating market forecasts of 52. The reading pointed to the fastest growth in the services sector in four months. Among countries for which flash data is available, French services sector grew at a slightly higher rate (52.4 from 52.2 in November), despite strikes that hit the country in December triggered by plans to reform France’s pension system; and in Germany, services growth was stable (52). Expectations for future output dipped slightly, with companies’ concerns once again centred on geopolitical uncertainty, notably including Brexit-related disruption and US trade wars, alongside more general concerns about slowing global economic growth in 2020.

The IHS Markit Eurozone Services PMI was revised higher to 51.9 in November of 2019 from a preliminary of 51.5 and compared to 52.2 in October. Yet, it was the second-lowest reading since January amid a muted increase in new business volumes. Gains in new work continued to be undermined by ongoing falls in services exports. On the other hand, job creation was the strongest since August. On the price front, input costs increased mainly due to higher company operating expenses while output prices rose only modestly. Looking ahead to the coming 12 months, service providers were on balance confident of an increase in activity from present levels. Sentiment was at its highest level since July, though remained well down on the historical series average.

The IHS Markit Eurozone Services PMI decreased to 51.5 in November 2019 from 52.2 in the previous month and matching market expectations, a preliminary estimate showed. The reading pointed to the weakest expansion in the services sector since January, as new business inflows rose at the softest pace in almost five years and backlogs of work dropped further. Also, the job creation rate eased to a ten-month low. On the price front, input prices continued to increase and output costs rose at the slowest rate since August 2017. Finally, expectations for future service sector deteriorated to its lowest since June 2013.

The IHS Markit Eurozone Services PMI was revised higher to 52.2 in October 2019 from a preliminary estimate of 51.8 and compared to September's final 51.6. Still, that was the second-lowest reading since January. New business volumes increased marginally, despite a 14th consecutive month of decline in export trade, while employment growth was unchanged at an eight-month low. On the price front, operating expenses rose at their sharpest rate for five months amid widespread reports of higher employment costs. Finally, business confidence dropped to a level only slightly above August’s near five-year low.

The IHS Markit Eurozone Services PMI increased to 51.8 in October 2019 from 51.6 in the previous month and slightly below market expectations of 51.9, preliminary estimates showed. Service sector growth picked up slightly compared to September but continued to run at one of the weakest rates since late-2014 as new business inflows slipped closer to stagnation. Service sector employment growth was the lowest seen since January, and the second weakest since 2016. Prices levied for services showed the smallest monthly rise since August 2017.

The IHS Markit Eurozone Services PMI dropped to 51.6 in September 2019 from 53.5 in the previous month and below preliminary estimates of 52, final data showed. The latest reading pointed to the weakest pace of expansion in the service sector since January, as new orders rose at a slower pace, especially from foreign clients and services exports declined. Backlogs of work fell for a second successive month and job creation growth softened to an eight-month low. On the price front, input costs increased at the weakest degree for 25 months and output prices were raised only modestly. Finally, confidence about the year ahead was stronger than in August.