• Eurozone Manufacturing PMI arrives at 47.3 in November vs. 46.0 expected.
• Bloc’s Services PMI steadies at 48.6 in November vs. 48.0 expected.
• EUR/USD defends gains near 1.0300 on the encouraging Eurozone PMIs.

The Eurozone manufacturing sector fell further into contraction in November, the latest manufacturing activity survey from S&P Global research showed on Wednesday.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 47.3 in November vs. 46.0 expectations and 46.4 last. The index hit a two-month top.

The bloc’s Services PMI stood at 48.6 in November vs. 48.0 expected and October’s 48.6.

The S&P Global Eurozone PMI Composite climbed to 47.8 in November vs. 47.0 estimated and 47.3 previous. The gauge registered fresh two-month highs.

Comments from Chris Williamson, Chief Business Economist at S&P Global

“A further fall in business activity in November adds to the chances of the eurozone economy slipping into recession. So far, the data for the fourth quarter are consistent with GDP contracting at a quarterly rate of just over 0.2%.”

“However, the November PMI data also bring some tentative good news. In particular, the overall rate of decline has eased compared to October.”

FX implications

EUR/USD pares back gains to challenge 1.0300 despite the upbeat euro area PMIs. The spot trading modestly flat on the day.