Global| Jan 05 2005European Industry Shows Modest Pickup in December After Months of Slowdown
Summary
Services activity in the Euro-Zone slowed progressively throughout 2004, according the latest PMI surveys published by NTC Research in London. The December index, at 52.65, rose a minimal 0.07 point from November's 15-month low. [...]
Services activity in the Euro-Zone slowed progressively throughout 2004, according the latest PMI surveys published by NTC Research in London. The December index, at 52.65, rose a minimal 0.07 point from November's 15-month low. Notably, though, the components covering new business and expectations gained more distinctly in the month, hinting that better activity rates may develop during this New Year. Employment had a modest increase and managed to remain slightly in positive territory (above 50%).
The performance was mixed by country, but all the countries maintained at least some degree of net growth, that is, an index level above 50%. Germany and Italy backtracked a bit, but France and Spain experienced nice advances.
The companion manufacturing survey, which was published Monday, had a modest 1.00-point increase in Europe. The November level, as with the services sector, was the lowest in more than a year. The December increase may suggest that the contractionary impact of the strong euro and high energy prices is beginning to ease.
| PMI Services Index | Nov 2004 | Dec 2004 | Change |
|---|---|---|---|
| Total Euro-Zone | 52.58 | 52.65 | +0.07 |
| Employment | 50.52 | 50.62 | +0.10 |
| New Business | 50.70 | 51.32 | +0.62 |
| Expectations | 61.39 | 63.16 | +1.77 |
| Germany | 51.32 | 50.96 | -0.36 |
| France | 54.01 | 54.86 | +0.85 |
| Italy | 53.10 | 52.69 | -0.41 |
| Spain | 52.26 | 53.03 | +0.77 |
| Memo: PMI Euro-Zone Manufacturing | 50.43 | 51.43 | +1.00 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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