{"id":110211,"date":"2025-01-06T13:42:24","date_gmt":"2025-01-06T09:42:24","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=110211"},"modified":"2025-01-06T13:42:27","modified_gmt":"2025-01-06T09:42:27","slug":"euro-zone-economy-ends-2024-on-a-weak-note","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/euro-zone-economy-ends-2024-on-a-weak-note\/01\/06\/market-updates\/","title":{"rendered":"Euro Zone Economy Ends 2024 on a Weak Note"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The euro zone&#8217;s economic activity contracted for the second consecutive month in December 2024, as ongoing weakness in the manufacturing sector overshadowed a modest recovery in services, according to the latest survey data.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Key Economic Indicators<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>HCOB Composite PMI<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Rose to <strong>49.6<\/strong> in December from <strong>48.3<\/strong> in November, slightly above the preliminary estimate of <strong>49.5<\/strong> but still below the critical <strong>50.0<\/strong> threshold separating growth from contraction.<\/li>\n\n\n\n<li>Data were collected earlier than usual (Dec. 5\u201318) due to the holiday season.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Sector-Specific Performance<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Services Sector<\/strong>:\n<ul class=\"wp-block-list\">\n<li><strong>PMI<\/strong> climbed back into growth territory at <strong>51.6<\/strong>, up from November\u2019s <strong>49.5<\/strong>, signaling a rebound in demand.<\/li>\n\n\n\n<li>New services business also improved, with its index edging up to <strong>50.2<\/strong> from <strong>48.1<\/strong>, ending three months of decline.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Manufacturing Sector<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The sector\u2019s performance continued to deteriorate, dragging down overall economic activity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Price Pressures<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Companies raised prices in response to higher input costs, with the composite output prices index reaching a four-month high of <strong>52.5<\/strong>, up from <strong>51.9<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>External Risks<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Political Instability and Trade Concerns<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The euro zone faces increased uncertainty, with U.S. President-elect Donald Trump pledging to impose broad tariffs, raising fears of a trade war.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>ECB Policy Actions<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The <strong>European Central Bank<\/strong> cut interest rates for the fourth time in December 2024, signaling its willingness to take further action to support the economy.<\/li>\n\n\n\n<li>Analysts anticipate at least another <strong>100 basis points<\/strong> of rate cuts in 2025, according to a Reuters poll.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook<\/strong><\/h3>\n\n\n\n<p>The euro zone\u2019s economic health remains fragile, with services showing signs of resilience but unable to offset the deeper slump in manufacturing. The ECB\u2019s dovish stance and easing measures may provide some relief, but political instability and external risks, such as the threat of U.S. tariffs, continue to weigh heavily on the bloc&#8217;s prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The euro zone&#8217;s economic activity contracted for the second consecutive month in December 2024, as ongoing weakness in the manufacturing sector overshadowed a modest recovery in services, according to the latest survey data. Key Economic Indicators HCOB Composite PMI: Rose to 49.6 in December from 48.3 in November, slightly above the preliminary estimate of 49.5 &hellip;<\/p>\n","protected":false},"author":9,"featured_media":104054,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6884,7171],"class_list":["post-110211","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-eur-usd","tag-euroznoe"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/110211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=110211"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/110211\/revisions"}],"predecessor-version":[{"id":110213,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/110211\/revisions\/110213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/104054"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=110211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=110211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=110211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}