·
"The highest since . . . " is a phrase that applies to
the service sector PMI or its main components for nearly every
European country in November. For instance, the
Euro-Zone-wide index, at 57.5, is the highest since October
2000. This diffusion index for service industries is based on a
survey of purchasing managers by NTC Research in Henley-on-
Thames, England, for Reuters Group Plc. The data, which begin in
July 1998, are contained in Haver's PMI database. Indexes
for Germany, Italy, Ireland and Spain all rose several points in
November, while the total Euro-Zone index and those for the UK
and Russia edged ahead modestly. The French PMI eased a
bit, but it had jumped more than 4 points in October, so it is
still strong. The small rise in the UK index made it
"the highest since" June 1997.
· The most notable development in November is the climb in the employment component for the Euro-Zone to 50.4, "the highest in" 18 months, i.e. May 2002, and the first indication of net employment gains, however tiny, since July 2002. A 2.9-point improvement in Germany was the main contributor, although that individual country index reached only 46.7, still well below the expansion/- contraction breakeven at 50.
· We note with some interest the fairly recent compilation of a Purchasing Manager Survey for Russia. NTC Research also conducts this survey, and the results are distributed by the Moscow Narodny Bank. Only two years old, this survey indicates a rapidly expanding service sector in Russia, with the latest gains concentrated in new business and outstanding business components.