Business activity in the euro area contracted less than the initial forecast in December, signaling that the recession in the euro area may not be as deep as feared.
The final PMI, prepared by S&P Global, stood at 49.3 points, below the breakeven level of 50 points in December, indicating a contraction. PMI, which was 47.8 points in November, was 48.8 in December with leading data.
Joe Hayes, senior economist at S&P Global Market Intelligence, said: “The euro area economy continued to deteriorate in December, but the contraction slowed in December after November. “The data suggest vaguely that the contraction may be more moderate than initially seen.”
In December, the services PMI came in at 49.8 points, above the initial estimate of 49.1 points.