Economic growth in the Eurozone is slowing down. The currency union composite PMI fell sharply in November, settling at 51,5 points, against 51,9 in October, against a consensus of 52 points. However, the figure remains above the 50-point threshold, which marks the boundary between expansion and contraction of activity.
To weigh, on the overall calculation of the euro area, is especially the worsening of the data relating to France, where the overall index fell from 50,5 to 48,5 points. Both components were down: the manufacturing data fell to 47,8 from 49,5 points and that on services to 48,8 from 51 points.
Counteracting France is Germany, which sees a new acceleration in private sector activity: the German composite PMI rose from 53,2 points in October to 54,3, thanks to the strong growth of the two indicators.
Germany which, increasingly, plays the role of locomotive of the entire continent, while the rest of the currency bloc flounders. If "France is a key element to explain the slowdown", observes Chris Williamson of Markit, "there are clear signs of weakening also in the rest of the region" with a pace of expansion which, excluding the cases of France and Germany "has been in November the lowest of these four months”.
