European Manufcaturing And Service Sectors Continue To Expand

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EUR/USD – The Euro-zone composite PMI rose to 53.7 from 53.0 as both the manufacturing and service sectors expanded in November for a consecutive month. It was the fastest pace of expansion in over two years as the service and manufacturing sectors improves to 53.2 and 51.0 from 52.6 and 50.7 respectively. The region’s economy grew by 0.4% in the third quarter ending its worst recession since WWII. However, policy makers remain reluctant to begin withdrawing stimulus efforts as downside risks remain. Rising unemployment and tight credit markets remain a concern and threaten to limit the scope of a recovery. The ECB is expected to leave interest rates on hold well into 2010 unless inflation pressures increase. To discuss this and other topics visit the EUR/USD Forum.