The fall in output was slightly less than originally thought in November. At 47.6, the final composite output was 0.5 points stronger than its flash estimate and 1.1 points above its final mark at the start of the quarter. It also saw its highest level since July. However, crucially, it remained still short of the 50-expansion threshold

The improvement versus October in part reflected a less weak service sector where the 48.2 flash PMI was revised up to 48.7. Even so, new business contracted for a sixth straight month, albeit by the least since July, with overseas demand notably weak. Backlogs also fell again, and employment was trimmed for the first time since January 2021 despite further limited additions in services. Growth expectations were slightly stronger than in October but historically still subdued. Price pressures were slightly more marked with input costs climbing sharply and output price inflation also a little firmer.

In terms of national composite output indices, the best performing member state was Ireland (52.3) which was the sole reporting country above 50. Spain (49.8) was only fractionally short but there were wider gaps for Italy (48.1), Germany (47.8) and, in particular, France (44.6).

The positive headline revision is in keeping with another small fall in Eurozone real GDP this quarter. This will not trouble the ECB which looks all the more likely to leave key interest rates on hold next week. Nonetheless, with financial markets becoming increasingly aggressive in their easing expectations for 2024, the rise in today's inflation measures should not be ignored. The final November data lift the region's RPI to exactly 0 and the RPI-P to 17. Real economic activity is running a little ahead of expectations while prices continue to undershoot.

No revisions are expected leaving the key composite output index at 47.1, up from Octobers's 46.5.

The Composite Purchasing Managers' Index (PMI) provides an estimate of private sector output for the preceding month by combining information obtained from surveys of the manufacturing and service sectors of the economy. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster is output growing (contracting). The report also contains the final estimate of the services PMI. The data are provided by S&P Global using a representative sample of around 5,000 manufacturing and services companies, the former including Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece and the latter Germany, France, Italy, Spain and the Republic of Ireland.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.