The services PMI index and the composite PMI improve in December in the Eurozone but remain below the threshold of 50 points, indicative of an expansion trend in economic activity, held back by the tertiary sector. China is slowing down, Japan is better than expected. Italy is moving but maintains a weak profile.
This is the summary of the PMI services and composite indices disclosed by Markit which periodically conducts the survey.
THEComposite PMI index processed by Markit last month, it stood at 49,1, up from 45,3 in November.
"The tertiary sector remained the main drag on economic output, with activity contracting for the fourth consecutive month of the survey", Markit reports, adding that "in line with recent trends, manufacturing remained the spotlight in the eurozone's economic performance, expanding for the sixth consecutive month and at a faster rate than in November.
LPMI index for the services sector it stood at 46,4 in December, up from 41,7 in November.
Coming to China, service sector activity grew at a slower pace, impacted by the resurgence of coronavirus outbreaks nationwide. The PMI index elaborated by Caixin/Markit for the services sector stood at 56,3, the minimum of three months, from November 57,8. Although declining, the index still remained well above the threshold of 50 that separates growth from contraction on a monthly basis. The sub-index for new business came in at 54,3, down sharply from 58,7 the previous month, according to the survey.
Growth in new export business, which only returned to expansion in November, also eased. The date on the services follows the one on the one by a few days Caixin manufacturing PMI in December which amounted to 53 points, down from the previous 54,9 points (the forecast was 54,8 points).
In Europe, Germany maintains its driving role: the PMI Index elaborated by Markit for the services sector stood at 47, a slight increase compared to the 46 recorded in November. But not even Germany, due to Covid and restrictive anti-pandemic measures, managed to reach the fateful threshold of 50 points. Italy floats with a services PMI index at 39,7 compared to 39,4 in November after the manufacturing PMI in December rose to 52,8 points from 51,5 in November. “Economic activity has again marked a rapid decline, as the restrictive measures against the Covid-19 continue to weigh on the sector. The flow of new orders has also decreased”, reports Markit who invites us not to give weight to the slight increase in the figure as it is the fifth consecutive contraction for Italy and signals in any case a drop in activity.
Positive note in Japan. The index Services PMI, published by Markit and processed by Jinbun Bank, indicates a value of 47,7 points, down very slightly compared to the 47,8 points of the previous month. However, the data compares with the 47,2 of the consensus. The indicator that represents the expectations of the directors of the tertiary sector companies, however, remains well below the critical threshold of 50 points, which acts as a watershed between contraction and growth.
Il PMI Composite, which also incorporates the findings of the survey conducted in the manufacturing sector, instead it rises to 48,5 points from 48,1 points the previous month.
