According to the key indicator of conditions for the manufacturing and services sector of the eurozone (PMI), the slowdown in business activity in the region continues for the second month in a row, as supply conditions have improved, and price pressure, on the contrary, has eased. The composite index of business activity for the month rose slightly – from 47.8 points in November to 48.8 in December. Economists predicted that the indicator would rise to 48.0. It is worth noting that this is the highest level of the index since August. However, for the sixth month in a row, it is below the 50 mark, which separates growth from contraction. In particular, in the manufacturing sector of the eurozone, for the seventh month in a row, there has been a drop in production volumes at enterprises, despite the fact that the pace of decline in production volumes and new orders has slowed down. The volume of production in the service sector also declined, although not at such a rapid pace. The PMI index for this sector rose to a 4-month high of 49.1, which, according to analysts, indicates «only a modest» deterioration in activity over the month. In Germany, the euro zone's largest economy, the pace of business decline has slowed in both manufacturing and services, thanks to improved supply chains and reduced concerns about energy shortages. However, in France, the decline in production accelerated, as the slowdown in the decline in production was offset by the sharpest drop in activity in the key sector in 22 months – the service sector.
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