Eurozone economy contracted in December

Inflation rising post-COVID-19 along with declining production caused fluctuations in the Eurozone.

S&P Global and Hamburg Commercial Bank (HCOB) have released the Eurozone’s December 2024 Composite and Services Sector Purchasing Managers’ Index (PMI) data.

According to the data, economic activity in the Eurozone declined in December due to a drop in new business and employment.

Inflationary pressures also increased during this period.

EUROZONE ENDED 2024 ON A FRAGILE NOTE

Thus, the Eurozone economy ended 2024 in a fragile state.

The Eurozone composite PMI, which was at 48.3 in November, reached 49.6 in December. This marked the highest level of the composite PMI in the last two months.

A PMI BELOW 50 INDICATES CONTRACTION

A PMI score above 50 indicates expansion, while below 50 indicates contraction.

Furthermore, the services sector PMI in the Eurozone, which was at 49.5 in November, rose to 51.6 in December.

CONFIDENCE INDEX DECLINED

Frankfurt-based Sentix released the Eurozone Investor Confidence Index for January. The Eurozone investor confidence index, which was at minus 17.5 in December, fell to minus 17.7 in January. Thus, the index reached its lowest level since November 2023.