Eurozone manufacturing remained subdued in December as the region’s Purchasing Managers’ Index came in at 50.6, below an initial (flash) estimate of 50.8. However, the index was above November’s 16-month low of 50.1.
The weakness in factory output, combined with the subdued services sector growth, suggests that the eurozone economy grew by just 0.1 per cent in the fourth quarter, according to Markit Economics, the market research firm that compiles this index.
France’s and Italy’s manufacturing sectors continued to shrink in December, but Germany’s number was in line with an earlier initial estimate at 51.2, as more new orders helped lead a return to growth.
In the meantime, in a third round of voting last Monday, the Greek Parliament failed again to approve the Prime Minister’s choice of President, triggering a snap election for early 2015.
The election could bring the left-wing Syriza party to power, jeopardising Greece’s participation in the international bailout programme and derail the reforms brought about by the current administration. Syriza has pledged to renegotiate the terms of the country’s €240 billion bailout.
The final vote is regarded as a major setback for the Prime Minister, as well as for eurozone countries that worked hard to bring Greece back from the brink of bankruptcy in 2010.
Finally, in the US, pending home sales saw a slight increase in the month of November, according to a report released last Wednesday by the National Association of Realtors (NAR), with pending sales rebounding from the drop seen in the previous month.
NAR said its pending home sales index rose 0.8 per cent to 104.8 in November after declining by 1.2 per cent to a downwardly revised 104.0 in October. Economists had expected the index to increase by about 0.5 per cent.
With the November increase, the pending home sales index is up by 4.1 per cent compared to a year ago, reflecting the biggest year-over-year gain since August 2013.
This article was compiled by Bank of Valletta plc for general information purposes only.