Main eurozone benchmarks hold despite poor PMI data
City Index December 5, 2012 5:15 PM
<p>The main eurozone benchmarks are steady as fresh PMI data indicates the region continued to struggle in November.</p>
The main eurozone benchmarks have held their ground in trading this morning (December 5th) after fresh purchasing managers' index (PMI) data showed the region's private sector continued to struggle in November.
According to the Markit Eurozone Composite PMI, output in the single currency bloc rose to 46.5 points last month, which is up from October's 40-month low of 45.7 and higher than an earlier flash estimate of 45.8.
PMIs work in that figures lower than the benchmark of 50 mean contraction within a sector, while readings higher than this indicate expansion, therefore the eurozone is still in a state of recession – albeit less severely than first thought.
Chris Williamson, chief economist at Markit, said: "There are signs that the recession may have reached a nadir … and it is reassuring to see that the final Eurozone PMI reading came in higher than the earlier flash estimate."
At 11:20 GMT, the pan-European DJ Eurostoxx 50 index was holding firm, making 0.1 per cent gains to a value of 2594.3 points.
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