Eurozone business activity continued to expand solidly in November 2025, with the Composite PMI at 52.4, only slightly below October's reading. This marks the eleventh consecutive month of growth and reflects a resilient private sector despite softer momentum in new orders. The services sector remained the main engine of expansion, reaching an 18-month high, while manufacturing slipped further below 50, signalling mild contraction and a five-month low.

Demand patterns were mixed. New orders rose for a fourth month, but at a slower pace, held back by persistent weakness in export markets. This limited pressure on capacity, contributing to flat employment levels, as modest hiring in services was offset by continued job losses in manufacturing.

Price developments pointed to easing output inflation, even as input costs rose at the fastest pace in eight months due to renewed manufacturing cost pressures and strong wage-driven increases in services. Firms were therefore absorbing more costs, raising selling prices only modestly.

Manufacturing inventories fell sharply, and supply-chain delays worsened, suggesting emerging bottlenecks. Despite these challenges, business confidence strengthened, led by improved sentiment in manufacturing. Overall, the data portray steady eurozone growth but with clear headwinds from global demand and sectoral divergence. These updates take the RPI to minus 16 and the RPI-P to minus 18, meaning that economic activities are now behind expectations in the euro zone.

The composite index is expected at 52.5 in the November flash versus 52.5 in October final. Manufacturing is seen at 50.4 versus 50.0 and services at 52.9 versus 53.0.

The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector business activity by combining information obtained from surveys of the manufacturing and service sectors of the economy. The flash data are released around ten days ahead of the final report and are typically based upon around 75-85 percent of the full survey sample. Results covering a range of variables including manufacturing output, employment, new orders, backlogs and prices are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The survey, produced by S&P Global uses 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.