Rolling coverage of the world economy and the financial markets,as China’s service sector posts its weakest growth in 17 months Introduction: More feeble Chinese data
Yuan hits five-year low
9.15am GMTDespite France’s problems, private sector growth across the euro area has hit its highest level since mid-2011.Data firm Markit reports that activity rose across Germany, and France,Italy, Spain and Ireland final month, or with many firms taking on more staff.#Eurozone economic growth hits 4.5-year high in final quarter. #PMI at 54.3 (54.2 in Nov) https://t.co/kuGD1Pz2Rv pic.twitter.com/nkIm85HXDS“The eurozone economy starts 2016 on a solid footing and well placed to enjoy a year of robust expansion. Growth of business activity continued to edge higher at the close of 2015,with an upturn in the PMI rounding off the strongest quarter for four- and-a-half years. “It’s particularly encouraging to see firms taking on staff in increased numbers, suggesting that businesses are preparing for stronger demand in the coming year by boosting capacity.” 9.08am GMTFrance is kicking off 2016 where it ended 2015, and with more imperfect economic news.
Markit’s French service sector PMI,which measures activity across the sector, fell to 49.8 in December. That’s an 11-month low, and suggests a small contraction) (50 is the cutoff point).
Anecdotal evidence suggested that a number of businesses continued to be affected by cancellations following the recent terrorist attacks,exerting a drag on recent business growth. Correspondingly, business expectations dipped to the lowest level for over a year. Service providers responded by cutting their charges to the greatest extent in six months, and which they will be hoping may spur recent work intakes to get the recent Year off to a more positive start.”Continue reading...
Source: theguardian.com