| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

News Main Page 
 
 News
 Irish
 European
 International
 Asia-Pacific Business Week
 
 Analysis/Comment

RSS FEED


How to use our RSS feed

 
Web Finfacts

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

We provide access to live business television and business related videos from: Bloomberg TV; The Wall Street Journal; CNBC and the Financial Times. Click image:

Links

Finfacts Homepage

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Search

News : European Last Updated: Dec 19th, 2007 - 13:17:15


Eurozone service sector business activity growth edged up to 15-month peak in October; Job creation held steady at four-year high
By Finfacts Team
Nov 3, 2005, 11:57

Email this article
 Printer friendly page

Commenting on the Eurozone PMI® survey data, produced for The Royal Bank of Scotland by NTC Economics, RBS Head of Financial Markets Economics & Rates Research, Dr Kevin Gaynor said:

“Eurozone service sector growth picked up again in October, driven higher by a further increase in the rate of growth of incoming new business. Particularly welcome is the news that firms continued to take on more staff -- despite seeing their input costs rise at the fastest pace for a year -- as growing business optimism prompted more companies to boost operating capacity. The further growth of backlogs of work, meanwhile, points to the development of capacity constraints, and suggests employment will continue to rise in coming months. The French and Spanish increases in selling prices hint at improving pricing power, no doubt related to their faster employment growth. This is direct evidence of “second round” inflation and should contribute to keeping the ECB on inflation alert.”

Source: NTC Research

Key findings for October:

The seasonally adjusted RBS/NTC Eurozone Service Sector Business Activity Index rose from 54.7 in September to 54.9 in October, signalling a modest improvement in the rate of growth to the fastest for 15 months. Business activity has now risen for 28 consecutive months.

All of the big-four euro member countries recorded an increase in business activity. The rate of growth accelerated in France and Italy, hitting four and eleven-month highs respectively, but slowed to two-month lows in both Germany (from the five-year high seen in September) and Spain. France consequently overtook Germany in reporting the strongest growth rate. The weakest growth of the big-four was seen in Spain, followed by Italy.

Incoming new business rose for the twenty-seventh straight month in October, with the rate of increase accelerating for the second month running to reach the fastest since July of last year.

Employment increased for the fifteenth successive month. The rate of job creation was unchanged from the four-year high seen in September, but nevertheless remained only modest as employment growth in France and Spain was offset by weak trends in Germany and Italy.

Backlogs of work grew for the second month running in October, rising at the fastest pace for 20 months. Trends varied markedly by country, ranging from a strong rise in France to falling levels in Germany and Italy.

Input cost inflation edged higher for the fourth consecutive month, reaching a 12-month high.

The rate of increase was again pushed up predominantly by the feeding through of higher oil and other energy prices.

Average prices charged rose for the second successive month, having fallen over the previous five months. The rate of increase picked up to a seven-month peak, but remained only weak.

Rising charges in France and Spain were offset by falling charges in Germany and Italy.


© Copyright 2007 by Finfacts.com

Top of Page

European
Latest Headlines
German ZEW Indicator of Economic Sentiment fell in January to a to 15-Year low indicating plunge in investor confidence
UK Annual Consumer Price Inflation held steady in December at 2.1%
Total cost of employment in Ireland at €38,541in 2007 - 16th of 24 EU countries; New EU member states have lowest labour costs
European Union countries fighting over share-out for cutting greenhouse gas emissions; Environment Commissioner now says some biofuels do more harm than good
UK factory gate/wholesale price annual inflation rose to 5% in December - the highest since 1991
Eurozone industrial production fell 0.5% in November
Manchester United almost doubled profit in 2007; Premier League clubs’ revenues to increase significantly in 2007/08 to over £1.76bn
Trichet says ECB is in position of "total alertness" to act in response to price/wage setting linked to the current high Eurozone headline inflation rate
European Central Bank keeps its its benchmark interest rate on hold at 4.00%; Trichet to warn of inflation risks at press conference
Bank of England keeps benchmark interest rate unchanged at 5.50%
European Central Bank expected to keep benchmark interest rate on hold at 4%; Bank of England base rate cut likely
Eurozone Economic Outlook: GDP growth to slow to annual rate of 2.1% in Q2 2008; If negative shocks were to fade economic slowdown may be only transitory
European Commission analysis looks at the role of India in world agriculture
Eurozone GDP revised up to 0.8% in Q3 2007 - up 2.7% in year to September
German exports and retail sales fell in November 2007
UK Consumer Confidence fell in December; Marks & Spencer reports first same-store sales fall in 2 1/2 years on reduced Christmas spending
Eurozone retail sales volume fell 0.5% in November 2007 - down 1.4% on annual basis but up 0.9% in EU27
UK Retail Sales December 2007: A far from Merry Christmas in the High Street
UK sales of commercial property plunged in Q4 2007 because of credit crunch; Market set for biggest annual losses in more than 25 years
Eurozone Business Climate Indicator and Economic Sentiment Indicator weakened in December 2007