Eurozone PMI report in line with deep contraction in GDP in Q4 – ABN Amro


"The eurozone composite PMI fell to 45.1 in November, down from 50.0 in October," noted ABN Amro Senior Economist Aline Schuiling.

Additional takeaways

"The composite PMI, is an average of the services sector PMI and the output index of the manufacturing PMI, weighted according to their shares in GDP (of around 66% and around 15%, respectively). The decline in the composite PMI was largely due to a sharp drop in the services sector PMI (to 41.3 from 49.6), which reflects that new lockdown measures in the services sector were introduced in all the larger eurozone countries."

"Overall, the PMI report is in line with a deep contraction in eurozone GDP in Q4, as modest growth in manufacturing will be overshadowed by sharp contraction in services. This is consistent with our base line for a double dip recession in the eurozone economy in the current quarter and the first quarter of next year."

"Looking further forward, our conviction in a sharp rebound in economic growth during the course of 2021 has strengthened in recent weeks. Once immunity is in place for key workers and the vulnerable, we expect a significant lifting of restrictions in Q2 and – especially – in Q3."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.

EUR/USD News

GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.

GBP/USD News

Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures