November 23, 2021

European Economic Sector Records Surprising Rise!

 An unexpected increase in economic activity in the European Zone is seen to have supported euro trade to rise from the deep ocean.

The services sector in the European Zone again saw an increase in November to 56.6 from 54.6 recorded previously, rising from a six -month low.

According to IHS Markit, the development of stronger business activity during the month has set aside analysts ’expectations to continue to experience a slowdown.

However, this reading is seen as unable to prevent the European Zone from experiencing slower growth in the fourth quarter, especially when the resurgence of Covid-19 cases in Germany is seen to cause new disruptions to the economy in December.

While the manufacturing sector in the European Zone also improved this month, with a slight increase at 58.6 compared to expectations for slower growth, and better than the previous reading of 58.3.

Despite showing improvement, its production growth is still stuck at its lowest level since the first shutdown of Covid-19 in 2020, which was constrained by supply chain disruptions.

This increase to some extent provided support for the euro to trade slightly against the US dollar. However, the currency is still at a 16 -month low.

Meanwhile, the services sector in the UK rose slightly from market expectations with an increase of 58.6 from 59.1 previously. Meanwhile, manufacturing activity increased by 58.2 from 57.8 recorded in October.

The pound, however, showed no reaction by remaining traded at its weakest level this year at 1.3380 against the USD.