November manufacturing and service sector PMIs continue to show contraction in much of the Eurozone while US has stayed positive. On the manufacturing front, the worst countries are Greece, Spain and Italy, to no great surprise. On the services side of things Spain printed a figure of 36.8, showing significant contraction and a five point decrease from October. From Markit:
Conditions in the Spanish service sector deteriorated sharply again during November amid an economic downturn. Activity decreased at a much faster pace than in October, while new business fell substantially again. Job shedding intensified as a result and optimism regarding the future path of activity remained muted. Meanwhile, input costs continued to rise, but charges were cut markedly.
Spain’s GDP growth was at 0.8 per cent year-over-year in the 3rd quarter (1.4 for EZ and 2.0 for US), but seems like it is going negative for the rest of the year. Eurostat puts the October unemployment rate at 22.8 per cent, a 2.3 percentage point increase year-over-year.
The next chart summarizes all the manufacturing and service sector figures based on the absolute figures and month-over-month changes. As a reminder a value below 50 shows month-over-month contraction and decrease in the value shows acceleration in contraction. That would be the lower left-hand side plots that are rather plentiful while sectors showing accelerating expansion are scarce.
US is showing mild expansion on both front, manufacturing (52.7) and services (52). In manufacturing order backlogs are contracting, but production and new orders are increasing. Service sector data shows expanding business activity and new orders, while employment and order backlogs are contracting.