City AM: The Eurozone is growing at its fastest rate for four-and-a-half-years – Markit's purchasing managers' index

23 November 2015

The eurozone economy is growing at its fastest rate for four-and-a-half-years, but is unlikely to be growing fast enough to deter policy-makers from expanding the currency-bloc’s €1.1 trillion (£770bn) asset purchase programme, economists have said.

Markit’s flash purchasing managers’ index (PMI) – compiled from a survey of businesses and released this morning - climbed to a score of 54.6 in November. The score is a 54-month high and is further above the 50 level that signals no growth. The flash figures are estimates based on around 85 per cent of the final data.

Businesses reported the strongest rate of employment growth and new orders since 2011.

The PMI is now pointing to a slightly faster rate of growth of around 0.4 per cent, possibly even 0.5 per cent in the final three months of 2015, according to Markit chief economist Chris Williamson.

Despite the index pointing to stronger growth, economists remained underwhelmed by the Eurozone’s economic recovery and are betting that the European Central Bank (ECB) will expand its asset purchase programme as it has been signalling.

Growth in Germany, the Eurozone’s biggest economy, accelerated to a three-month high. However, Markit identified France, the eurozone’s second biggest economy as an area of weakness – its PMI dropped to three-month low.

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Markit PMI

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