Eurozone PMIs Improve, But Keep Pressure On ECB For More Easing

Business activity in the eurozone grew at the fastest pace in two months in December, according to a flash estimate from Markit out on Tuesday. But the pace of expansion was still one of weakest seen in 2014. The composite purchasing managers index rose to 51.7 from November's level of 51.1, the lowest in 16 months. The services PMI climbed to a two-month high of 51.9, while the manufacturing reading came in at 50.8, the strongest level in five months. Markit said weakness was again "particularly evident" in core countries, with Germany's composite reading sliding to an 18-month low. In France, the composite PMI climbed to best level in four months, driven by the services sector. "On one hand, the upturn in the [eurozone] PMI supports the view that the ECB's stimulus is starting to take effect," Markit said in the release. "On the other hand, the disappointing rate of expansion, and especially the weakness evident in Germany and France, will add to calls for additional stimulus to be sanctioned without further delay," the institution said.