LONDON — Tentative signs emerged in December that the eurozone economy may have passed the worst of its downturn, although a recovery still looks some months away, a business survey showed on Friday.
Report by Reuters
Markit’s Eurozone Composite PMI, which gauges business activity across thousands of companies, rose in December to 47,2 from 46,5 in November. The headline figure was revised down slightly from an initial reading of 47,3.
While lingering below the 50 line dividing growth from contraction for an 11th month, December’s reading was the highest since March last year.
The decline eased among the services firms that make up the bulk of the eurozone’s economy, ranging from banks to restaurants, but manufacturers endured an awful end to 2012.
Survey compiler, Markit warned that Friday’s figures would probably fail to prevent the euro zone’s recession deepening in the fourth quarter of last year, thanks to dismal figures in October and November.
“The surveys at least bring some substance to the belief that the worst is over and that a return to growth is in sight for the region in 2013,” said Chris Williamson, chief economist at Markit.
“The surveys rose to multi-month highs in all four of the largest euro member countries, suggesting that rates of decline eased in France, Italy and Spain while the economic situation stabilised in Germany.”
As with last year, the eurozone economy’s fate hinges on the resolution of the sovereign debt crisis, which still smoulders despite the creation of financial firewalls from the European Central Bank and European Union.
