The Eurozone’s services sector continued to demonstrate robust growth in November, with the Services Purchasing Managers’ Index (PMI) registering at 53.1. This graphic illustrates that services activity is still growing, though. It was down from October’s reading, also 53.1. Yet the services sector displays extraordinary strength. For that particular group of countries, it has a profoundly important role in shaping the overall economic landscape of the Eurozone.
Across Europe, the story was not so simple, with divergent patterns in November underscoring the fragility and unevenness of the region’s economic landscape. While France’s services sector thrived, Germany’s manufacturing output growth appeared to wane, reflecting challenges that some sectors face. The difference in performance in these two Eurozone members might bring to light more central economic realities that are at work within the Eurozone.
Despite these variations, business sentiment throughout Europe has been on a positive trend through the year. One bright spot we found is that businesses are definitely starting to feel more optimistic. This optimism has only resulted in anemic economic growth to date. Analysts argue that despite the boost in sentiment, there will be few immediate effects on growth.
Looking ahead, our forecasts predict that economic activity will continue to solidify through 2026. As cheerful as the new numbers are, experts warn that the road to continued, more robust growth won’t be on instant display. Stay tuned to see how this new-found optimism meets reality in the months ahead. Businesses will have to adapt to unforeseen pitfalls, so this dynamic is one to watch very carefully.