Markit: Eurozone flash PMI continues to rise in Dec

According to a flash purchasing managers’ index (PMI) released by Markit Economics, the Eurozone sustained its expansion in December and posted the best growth in Q4 on the back of an increase in manufacturing output supported by growing service sector activity.

The PMI slightly rose and reached 53.9 in December after the 53.3 recorded in November, which was an 11 month-high. This indicated that as the demand got stronger, especially in manufacturing, firms went on expanding their capacity.

In December, manufacturing growth gained speed on the back of the weakening euro and reached its highest level since April 2011. The growth in manufacturing on the month was also the largest on a monthly basis since April 2014 and helped speed up new orders and employment.

According to Markit, the service sector continued to grow in December, though at a slower pace. The growth in the service sector was below the average of 2016 although it expanded.

According to the Markit data on December PMI, Germany posted the largest growth in the Eurozone. The growth in France also reached its fastest of more than a year but was still behind Germany.