In November, the growth of private sector activity grew again in the euro zone, after three months of contraction, but with two latent risks: record inflation and fears about the fourth wave of Covid-19 in the continent anticipates a last quarter weaker than the previous one.
The PMI index, calculated on the basis of company surveys, rose from 54.2 in October to 55.8 in November, its highest in the past two months.
The rebound was accompanied by a new and marked increase in inflationary pressures during the month, as the costs borne by firms and the average prices charged for both products and services increased at record rates.
Although the pace of job creation increased to its second highest rate in more than 21 years, optimism about future prospects fell to its low of 10 months due to renewed concern about Covid-19 and persistent problems supply.
In July, private sector growth reached its highest level in 21 years.
“The strengthening of the expansion of private activity in November took economists by surprise, who were betting on a slowdown, the area is likely to have weaker growth in the fourth quarter,” said Chris Williamson, economist at Markit.