Markit Eurozone PMI and GDP
Nations ranked by all-sector output growth (Sep)*
Ireland 55.7 2-month low
Germany 53.2 2-month low
Italy 52.8 29-month high
France 50.5 20-month high
Spain 49.6 2-month low
Of the four largest nations, Germany reported the
fastest output growth and an increase in
employment for the second time in the past three
months. Italy also reported a solid increase in
business activity – the sharpest since April 2011 –
and the slowest rate of job losses for two years.
France eked out a marginal expansion of output,
following a one-and-a-half year sequence contraction. The French labour market moved
closer to stabilising as well, with only slight
reductions in staffing levels signalled at
manufacturers and service providers alike.
Spain was the main weak spot in September, as a
fall back into contraction in service sector activity
more than offset continued modest growth in
manufacturing production. Although Spain’s rate of
job losses eased to a 28-month low, it remained the
steepest among the big-four eurozone economies.
Services:
At 52.2 in September, up from 50.7 in August, the
Services Business Activity Index rose to a 27-
month high and came in above its earlier flash
estimate of 52.1. Service sector output expanded
for the second month running.
Growth hit a seven-month high in Germany, a 20-
month record in France and a two-and-a-half year
high in Italy. The expansions in France and Italy
followed periods of sustained contraction. Spain fell
back into decline, however, following a modest
expansion in August, while growth in Ireland
remained strong despite easing sharply over the
month.
The outlook for the eurozone service sector
remained positive on the whole, with new business
growth at a 27-month record and business
confidence rising to its highest level since March
2012. Companies were heartened by the ongoing
signs of recovery in both the currency union and
broader global economy.
The higher levels of output and new business,
alongside the brightening outlook for the sector,
were reflected in the labour market in September.
Employment stabilised, halting a 20-month
sequence of job losses. Ireland and Germany
reported stronger increases to payroll numbers,
while the rates of reduction in France, Italy and
Spain all slowed.
The rate of inflation in average input prices eased
to a three-month low in September. Higher costs
were linked to increased fuel, oil and transportation
prices. Although strong competition led to further
selling price decreases, the pace of decline was the
weakest since May 2012.
Chris Williamson, Chief Economist at Markit said:
“Growth is being led by Germany, but France has
also now returned to growth. Even more
encouraging are the upbeat survey data for Ireland
and Italy, both of which show signs of returning to
robust growth, and Spain has also stabilised, as
ongoing weakness in the domestic economy is
offset by a strong upturn in exports.
“The region is by no means out of the woods yet,
however. Growth remains only modest – the
Eurozone PMI is consistent with GDP rising by just
0.2% on the third quarter, and the political instability
that has reared up in Italy is a reminder that there
remains plenty of scope for recoveries to be
derailed.”
Source: Markit
Nations ranked by all-sector output growth (Sep)*
Ireland 55.7 2-month low
Germany 53.2 2-month low
Italy 52.8 29-month high
France 50.5 20-month high
Spain 49.6 2-month low
Of the four largest nations, Germany reported the
fastest output growth and an increase in
employment for the second time in the past three
months. Italy also reported a solid increase in
business activity – the sharpest since April 2011 –
and the slowest rate of job losses for two years.
France eked out a marginal expansion of output,
following a one-and-a-half year sequence contraction. The French labour market moved
closer to stabilising as well, with only slight
reductions in staffing levels signalled at
manufacturers and service providers alike.
Spain was the main weak spot in September, as a
fall back into contraction in service sector activity
more than offset continued modest growth in
manufacturing production. Although Spain’s rate of
job losses eased to a 28-month low, it remained the
steepest among the big-four eurozone economies.
Services:
At 52.2 in September, up from 50.7 in August, the
Services Business Activity Index rose to a 27-
month high and came in above its earlier flash
estimate of 52.1. Service sector output expanded
for the second month running.
Growth hit a seven-month high in Germany, a 20-
month record in France and a two-and-a-half year
high in Italy. The expansions in France and Italy
followed periods of sustained contraction. Spain fell
back into decline, however, following a modest
expansion in August, while growth in Ireland
remained strong despite easing sharply over the
month.
The outlook for the eurozone service sector
remained positive on the whole, with new business
growth at a 27-month record and business
confidence rising to its highest level since March
2012. Companies were heartened by the ongoing
signs of recovery in both the currency union and
broader global economy.
The higher levels of output and new business,
alongside the brightening outlook for the sector,
were reflected in the labour market in September.
Employment stabilised, halting a 20-month
sequence of job losses. Ireland and Germany
reported stronger increases to payroll numbers,
while the rates of reduction in France, Italy and
Spain all slowed.
The rate of inflation in average input prices eased
to a three-month low in September. Higher costs
were linked to increased fuel, oil and transportation
prices. Although strong competition led to further
selling price decreases, the pace of decline was the
weakest since May 2012.
Chris Williamson, Chief Economist at Markit said:
“Growth is being led by Germany, but France has
also now returned to growth. Even more
encouraging are the upbeat survey data for Ireland
and Italy, both of which show signs of returning to
robust growth, and Spain has also stabilised, as
ongoing weakness in the domestic economy is
offset by a strong upturn in exports.
“The region is by no means out of the woods yet,
however. Growth remains only modest – the
Eurozone PMI is consistent with GDP rising by just
0.2% on the third quarter, and the political instability
that has reared up in Italy is a reminder that there
remains plenty of scope for recoveries to be
derailed.”
Source: Markit
