Euro Zone Heading into Mild Recession.

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The final composite S&P Global Purchasing Managers’ Index (PMI) for the euro zone, which is regarded as a reliable indicator of economic health, increased from October’s 23-month low of 47. 3 to 47.8 in November, matching an initial estimate.

According to official figures released the region’s unemployment rate decreased to 6.5% in October.

However, the input and output price indices both decreased, suggesting that inflationary pressures may have already peaked. This is likely good news for the European Central Bank’s policymakers.At 62. 3, the production prices index hit a 3-month low.

According to official preliminary figures released last week, the bloc’s inflation rate was a lower-than-anticipated 10. 0% in November but was still five times the ECB’s 2% target. In an effort to contain price increases, the central bank has been hiking interest rates, and it is anticipated to hit another 50 basis point.

Reuters

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