Eurozone business growth at two-and-a-half-year low
Service sector growth among the countries sharing the euro slowed to a two-and-a-half-year low in December, weighed down by uncertainty in financial markets, according to a survey published Friday.
Results of NTC Research's survey of business leaders gave a figure of 53.1 in December, revised down from an earlier flash estimate of 53.2 and compared with 54.1 in November.
Analysts polled by Thomson Financial News had expected the flash estimate to remain unchanged. A level above 50 indicates sector growth.
The figures provide "further compelling evidence that the Eurozone economy ended 2007 under significant pressure from the credit crunch, strong euro, elevated oil and commodity prices, higher interest rates and softer growth in key export markets," said Global Insight chief European economist Howard Archer.
The figures reflect slowdowns in Germany, Spain and Italy.
Only in France was robust growth in the services sector sustained.
The employment component was revised down to 54.1 from 54.5 in the flash estimate, marking the lowest level since April, while new business dropped to 51.0 from 52.0, the lowest number since November 2004.
Business expectations were revised down marginally to 60.6 from 60.7, as was outstanding business, to 50.5 from 50.7.
"Furthermore, prospects for activity look relatively muted in the near term at least, with incoming new business at its weakest level since November 2004 and showing only marginal expansion," Archer said.
The composite PMI index, bringing together the surveys for the service and manufacturing sectors, also registered a two-and-a-half-year low in December, standing at 53.3, down from 54.1 in November.
Growth in the manufacturing sector registered the second-weakest figures in the past 28 months.
December's figures covered the 13 EU member states which were using the euro last year. Malta and Cyprus adopted the European currency this month.
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