Investing.com – Euro zone private sector activity slowed in December to its weakest level in more than four years, according to survey data released on Friday.
The preliminary reading of the IHS Markit services purchasing managers’ index came in at 51.4 this month from 53.4 in November.
Economists had forecast a reading of 53.5.
The manufacturing PMI fell to 51.4 compared to expectations for 51.9 and from 51.8 a month earlier.
The composite output index, which measures the combined output of both the manufacturing and service sectors fell to 51.3 from 52.7, against expectations for 52.8. That was its lowest level since November 2014.
The report highlighted that new business inflows almost stalled, job creation slipped to a two-year low and business optimism deteriorated.
“An undercurrent of slowing economic growth was exacerbated by protests in France and on-going weak demand for autos,” IHS Markit explained.
“Companies are worried about the global economic and political climate, with trade wars and Brexit adding to increased political tensions within the euro area. The surveys also point to further signs that the struggling autos sector continued to act as a drag on the region’s economy,” IHS Markit chief economist Chris Williamson said.
He added that the surveys suggest growth of just 0.1% for the region in the fourth quarter.