The eurozone PMI report issued today has shown that the regional economy is gaining momentum.
The report has signaled that Europe’s factories are lagging behind service sector firms, which is an indicator of the weakness in the global economy, which has left Europe more reliant on domestic demand.
Markit’s monthly indicator of the sector's health - the eurozone PMI - rose from 53.9 in October to 54.4 in November.
Commenting on the report, Chris Williamson, chief economist at Markit, said:
"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."
That would be an improvement on the third quarter of 2015, when GDP rose by just 0.3%
"The improved performance in terms of economic growth and job creation seen in November are all the more impressive given last weekend’s tragic events in Paris, which subdued economic activity in France – especially in the service sector."
Analysts consider that the report provided no vivid signs of acceleration or deceleration, just a modest recovery. That is a food for both ECB hawks and doves.