LONDON (ICIS)--The eurozone composite purchasing managers’ index (PMI) has hit an 82-month high, climbing from 57.5 in November to 58.0 this month, according to a flash estimate from IHS Markit on Thursday.
The flash eurozone services PMI (56.5), manufacturing PMI output index (62.0) and manufacturing PMI (60.6) were all up month on month as well, recording 80-month, 212-month and all-time highs respectively.
A PMI score of 50.0 or over points to growth in a sector, whereas a reading below 50.0 signifies a contraction.
“The PMI is signalling an impressive 0.8% GDP increase in the fourth quarter, with accelerating growth seen in both Germany and France, where fourth-quarter growth rates of 1.0% and 0.7-0.8% are indicated respectively,” said chief business economist at IHS Markit Chris Williamson.
Williamson pointed to the “booming manufacturing sector” as the driving force behind the eurozone upturn, adding that stronger domestic demand is also helping to drive faster service sector growth.
“A revival in business confidence about the year ahead highlights how companies are shrugging off political uncertainty and instead focusing on the improving demand environment, setting the scene for a good start to 2018,” he added.
“Although price pressures abated slightly in December, the robust growth of demand and tightening labour market hint at rising core inflationary pressures as we move through 2018.”
The flash estimate is based upon approximately 85% of final replies. Final December data will be published on 2 January for manufacturing and 4 January for services and composite indicators.
Pictured: inauguration of the first French offshore floating wind turbine in October in Saint Nazaire. France's growth accelerated in the third quarter
Source: Sebastien Salom Gomis/SIPA/REX/Shutterstock