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Eurozone business activity picks up further in Sept

Private sector business activity in the 16-nation eurozone Eurozone
Noun

same as Euroland

Eurozone neurozona, zona euro

Eurozone nzona euro 
 picked up further in September as the services sector returned to positive territory, a closely-watched survey showed on Wednesday.

But analysts warned that an acceleration in unemployment would tighten the brakes on already "waning" momentum, with consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level.  likely to be held back in the run-up to the crucial Christmas retail period.

Overall economic activity improved after emerging from negative territory in August but manufacturing business slowed, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the survey of some 14,000 companies, designed to provide a snapshot of the economy's health.

The flash estimate purchasing managers' index (PMI See Private Mortgage Insurance. ) for the 16 countries using the single currency, compiled by data and research group Markit, rose to 50.8 points from 50.4 in August.

The services index, based on around 85 percent of survey replies, rose from 49.9 points to 50.6, topping the emblematic 50-point boom-or-bust line to indicate a return to growth in this segment for the first time in 16 months.

Chris Williamson, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the  at Markit, said the results "round off the strongest quarter since the second quarter of last year, suggesting that the eurozone economy stabilised in the third quarter.

"Robust manufacturing inventory ratios and service sector confidence suggest we could see an even better performance in the fourth quarter.

"However, the momentum of the rebound is showing some signs of waning, with an increase in the rate of job losses in September particularly disappointing and suggesting only modest growth lies ahead."

Having slowed over the previous four months, the rate of job losses increased in September -- a 15th straight month of rising unemployment -- with input costs and selling prices falling only slightly slower than before.

IHS IHS

(I.H.S.) first three letters of Greek spelling of Jesus; also taken as acronym of Iesus Hominum Salvator ‘Jesus, Savior of Mankind.’ [Christian Symbolism: Brewer Dictionary, 480]

See : Christ



IHS
 Global Insight chief economist Howard Archer warned that "activity is still hardly racing ahead and serious obstacles remain to sustainable healthy eurozone growth."

Echoing Archer's view that the European Central Bank European Central Bank (ECB)

Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
 is unlikely to alter its monetary stance, Clemente De Lucia of BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide.  Parbias stressed that the indices "are still extremely low by historical standards.

"The recovery in the manufacturing sector might fade next year, once the effects of budgetary stimula are not felt any more and the technical rebound following the end of the de-stocking cycle runs out of steam," De Lucia said.

In other data for the eurozone released Wednesday, the European Union's Eurostat agency said new industrial orders in July rose by 2.6 percent, a slowing after June's gain of 4.0 percent.
Copyright 2009 AFP Global Edition
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Author:AFP
Publication:AFP Global Edition
Date:Sep 23, 2009
Words:406
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