Eurozone risks renewed slowdown

The eurozone economy risks a renewed slowdown. A Purchasing Managers Index for factories and services activity unexpectedly fell to 51.4 in November, the lowest in 16 months, from 52.1 in October, London-based Markit Economics said. A reading above 50 indicates expansion.

A German measure also declined, and a separate report showed weakness in China, where a factory gauge dropped to a six-month low. While unprecedented stimulus by the ECB will start to take effect in coming months, weak growth in Germany and France and rising tensions in Ukraine threaten the eurozone’s modest revival. The 18-nation economy expanded 0.2% in the third quarter.

“New monetary stimulus is only a matter of time,” said Marco Valli, chief eurozone economist at UniCredit in Milan. “Today’s data tilt the balance toward the ECB announcing new easing measures already at the December meeting.”