Eurozone private sector activity shrinks in November

A contraction in manufacturing and services activity in the eurozone led to a slowdown in private sector growth in November, marking the first time since January that both sectors have recorded a simultaneous decline in output.

The figures raise the possibility that the European Central Bank will cut interest rates by half a point next month, according to the Financial Times.

The S&P Global composite output index fell to 48.1 in November, its lowest level since January after hitting 50 in October, increasing the possibility that the ECB will cut interest rates by half a point next month, according to CNBC.

New business in Europe’s manufacturing and services sectors also fell sharply, and international orders have fallen sharply since the end of 2023.

The private sector also remained in recession, with backlogs of work falling further. Input cost inflation rose to a three-month high and producer price growth accelerated from October.