Euro zone PMI survey indicates economic improvement

The latest Purchasing Managers' Index (PMI) survey data indicates improvement for the entire euro zone and confirms the slowing rate of contraction. The composite Markit Purchasing Managers' Index (PMI) increased to 47.9 in December compared to 47 in November. Though any number below 50 indicates a contraction, but the increase in number shows improvement in the activity.

At the same time, the manufacturing index for the entire euro zone increased to 46.9 in December compared to 46.4 in November and also the services index increased to 48.3 in December compared to 47.5 in November. The better activity was mainly driven by two largest economies in the euro zone, Germany and France.

These survey data confirm that Euro zone industrial and services activities are slowly improving and further steep downturn is unlikely. But the euro zone growth is expected to be between 0.1 and 0.2% level for the next year 2012.