Euro-Zone Private Sector Unexpectedly Slips Into Contraction
- Flash composite PMI comes in at 48.1 in November; est. 50
- Investors are betting ECB will cut rates more aggressively
Euro-area business activity unexpectedly shrank in November, a sign of the damage being wrought by political chaos and heightened discord over trade.
The composite Purchasing Managers’ Index by S&P Global slid to 48.1 from 50 in October, dipping back beneath the level that separates growth from contraction. Analysts had estimated no change and were particularly surprised by a steep deterioration in services, where activity dropped for the first time since January.