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Eurozone recovery 'loses momentum'

2013-12-04 10:21:45

The eurozone "lost some momentum" in November, a survey says, with private

sector activity slowing slightly.

The Markit composite purchasing managers' index (PMI), which tracks several

sectors, slipped to 51.7 from 51.9 in October.

But the figure beat expectations, and the PMI reading stayed above 50,

indicating expansion.

In Germany, composite PMI hit a 29-month high as firms hired more workers to

meet the demands of new orders.

In Spain, the service sector returned to growth and the sector saw its biggest

increase of new business since 2007.

'Fragile' growth

But other readings indicated France was at risk of going back into recession,

with an all-sector reading of 48 - a five-month low.

Italy also worsened markedly from the month earlier with a composite PMI

reading of 48.8.

Analysts say the eurozone is showing signs of a split as the economic picture

picks up in some countries but slows elsewhere.

"The final PMI data confirm that the euro area's recovery lost some momentum in

November," said Markit's chief economist Chris Williamson.

"It's clearly a concern that the rate of growth remains so fragile."

Meanwhile, growth in the eurozone was confirmed at 0.1% in the third quarter, a

slowdown from 0.3% growth in the previous three months, according to Eurostat,

the European statistics agency.

The eurozone shrank 0.4% compared with the same period the year before.