Eurozone private sector growth hits multi-year high in November

The eurozone private sector last month saw its strongest growth since May 2023, a purchasing managers' index survey showed on Wednesday, with the services economy leading the charge.

The Hamburg Commercial Bank composite PMI rose to 52.8 points in November, beating the 52.4 flash reading and rising from October's score of 52.5. Climbing further above the 50-point neutral mark, the PMI suggests growth picked up last month.

Survey publisher S&P Global noted it was the highest composite PMI reading since May 2023. The composite PMI is calculated using a service sector reading, also released Wednesday, and the manufacturing data published Monday.

The services PMI improved to 53.6 points in November from 53.0 in October. Similarly, it signalled the fastest expansion since May 2023. It beat the flash reading of 53.1 points.

"The faster rise in activity was accompanied by stronger sales growth, with demand for services improving for a fourth month in a row and to an extent that was the greatest in a year-and-a-half. Eurozone service providers were nevertheless able to clear backlogs of work, thereby reversing October's marginal uptick," S&P Global said.

"Meanwhile, business confidence improved slightly, with optimists across the euro area service sector continuing to outnumber pessimists. However, growth expectations fell short of their long-term average."

Released on Monday, the Hamburg Commercial Bank manufacturing PMI fell to 49.6 points in November, a five-month low, from the 50-point neutral score in October. The reading was a hair below the 49.7 flash tally and represents a five-month low, S&P Global noted on Monday.

The composite PMI features a panel of 5,000 firms, with responses collected in the second half of the month.