(IHS Markit) Eurozone’s Composite Output Index was at 53.3 in December, the lowest since March and below 55.4 in November.
The decline in the output index reflected a resurgence of Covid-19 cases, with impacts also felt in the services sector, whose activity fell to 53.1, from 55.9 in November.
Manufacturing output was also held back by supply-related constraints which resulted in difficulties in sourcing inputs.
Germany’s output was in the contraction zone, with the activity at 49.9, an 18-month low, with the level of activity posting slower growth in France, Ireland, Spain, and Italy.
Employment continued to rise, although the rate of job expansion was the slowest since May, with backlogs rising for the tenth straight month.
Inflationary pressures persisted, with input costs and output charges at the second-highest rate of increase on record.
Business optimism rose slightly from the ten-month low in November. Both manufacturing and service sectors posted rising confidence.
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