Private sector output growth in Germany accelerated further in November, partly driven by efficiency improvements and increased new order intakes, according to panel evidence. Flash Germany Services Activity Index recorded 55.6 up from 54.5 in October, what is a 14-month high. In fact, the rise in new business was a particularly bright spot in the data set, with the respective pace of expansion the fastest in two years. Flash Germany Manufacturing PMI rose to 52.6 from 52.1 in October what is a 3-month high.

 

Flash Eurozone Manufacturing PMI inclined to at 52.8, what is a 19-month high, while Flash Eurozone Services PMI Activity Index came at 54.6 from 54.1 in October what is a 54-month high. The PMI shows a welcome acceleration of eurozone growth, putting the region on course for one of its best quarterly performances over the past four-and-a-half years. The data are signalling GDP growth of 0.4% in the closing quarter of the year, with 0.5% in sight if we get even just a modest uptick in December.

 

On Thursday M3 Money Supply figures were released from Eurozone.The annual growth rate of the broad monetary aggregate M3 increased to 5.3% in October 2015, from 4.9% in September, averaging 5.1% in the three months up to October. No change was expected. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate including currency in circulation and overnight deposits (M1) stood at 11.8% in October, compared with 11.7% in September. 

 

From Eurozone, on Friday, Spanish CPI and German Consumer Climate figures were released. The annual rate for the overall Spanish Consumer Price Index (CPI) in October was ‒0.3%, four tenths higher than that registered in the previous month. Analysts were predicting annual rate of -0.5%. The annual change of core inflation increases one tenth, reaching 0.9%. The monthly change of the overall index is 0.6%.The groups that most contributed to this variation were transport, whose rate increased seven tenths up to –5.7% and communications, whose rate stood at 0.5%, more than one point higher that that registered in the previous month.

 

Consumer sentiment in Germany has weakened once again this month. While the consumer climate has fallen slightly for the fourth time in a row, its decline is significantly less than in previous months. Following a value of 9.4 points in November, the overall indicator is forecasting 9.3 points for December. While the willingness to buy rose modestly in November, both the economic and income expectations have suffered slight losses.

 

This week markets will be looking at:

 

German Prelim CPI (Monday)

Spanish Manufacturing PMI (Tuesday 9:15)

Italian Manufacturing PMI (Tuesday 9:45)

German Retail Sales (Wednesday 8:00)

Spanish Unemployment Change (Wednesday 9:00)

CPI (Wednesday 9:00)

Spanish Services PMI (Thursday 9:15)

Italian Services PMI (Thursday 9:45)

Minimum Bid Rate/ECB Press Conference (Thursday 14:30)