The purchasing managers’ index survey suggests that the Eurozone reached a four-month high in terms of economic growth at the end of December 2015 (1).
Some of the Eurozone’s most troubled economies have turned their fortunes around. Italy recorded its most rapid economic expansion in almost five years (2), and Spain announced that its unemployment rate had seen its biggest drop for at least a decade. Ireland has also released positive figures concerning joblessness, as figures hit their lowest level since 2008 (3).
The final reading of the Eurozone Purchasing Managers’ composite index for December 2015 was revised up to 54.3 from an earlier estimate of 54. Any figure above 50 indicates growth (1).
“The Eurozone economy starts 2016 on a solid footing,” announced financial information provider, Markit (1).
However, Markit Chief Economist, Chris Williamson, suggests we have only seen 1.5% growth for the year as a whole, after noting that the survey indicated only “a modest 0.4% increase” in economic growth for the fourth quarter (1).
The survey also found that businesses have continued to cut prices. This indicates that the European Central Bank may find it challenging to raise the inflation rate to its target of just under 2% (2).
(1) The BBC. “Eurozone growth hits four-month high in December”. bbc.co.uk
(2) Fox Business. “Eurozone Growth Accelerated at End of 2015”. foxbusiness.com
(3) The Financial Times. “Spain and Ireland post steep fall in joblessness”. ft.com