Eurozone Private Sector Growth Rose in November – Just!

05 December 2002

According to the Reuters Eurozone monthly indices, growth in the eight largest European economies within the twelve-nation euro currency zone (Austria, France, Germany, Greece, Ireland, Italy, The Netherlands and Spain) increased slightly in November – although the outlook remains subdued.

Key findings from the report, produced for Reuters by NTC Research are:

The Composite Output Index, an indicator of overall private sector economic growth, rose from 50.7 in October to 51.1 in November, signalling a slight expansion of output for the second month running

New Business
Demand for goods and services showed almost no growth in November. The Composite New Business Index rose from 49.7 in October to 50.6 in November, rising above the 50.0 no change level to indicate an expansion of demand for goods and services for the first time in three months – but the rate of expansion was only marginal.

Weak demand caused firms in both manufacturing and service sectors to reduce head counts in order to cut costs and boost productivity. The Composite Employment Index recorded 47.3 in November, up only marginally from 47.2 in October.

Input cost inflation continued to weaken in November, with input price inflation easing in both manufacturing and service sectors during the month.

The survey is derived from over 5,500 manufacturing and services companies. These countries together account for an estimated 92% of total Eurozone gross domestic product. Questions are asked about real events and are not opinion based.

Data sourced from: NTC Research; additional content by WARC staff