India's dominant services industry slumped in November on higher prices

Image for representation

Image for representation

Private sector activity in Kenya rose in November from a record low hit in the previous month, pointing to a potential recovery as political risks ease, survey data showed on Tuesday.

The seasonally adjusted business activity index stood at 48.5 in November, off from 51.7 in October.

IHS Markit's final composite Purchasing Managers' Index for the euro zone, seen as a good guide to growth, was confirmed at an earlier flash reading of 57.5, up from October's 56.

Neither German Chancellor Angela Merkel's struggle to form a governing coalition nor Catalonia's vote to separate from Spain have left significant marks on the 19-nation euro economy so far, which is heading for its best annual performance in a decade.

The warning for higher prices charged to customers will confirm the reasons for the Bank of England's interest rate hike last month, according to Samuel Tombs, chief United Kingdom economist at the consultancy Pantheon Macroeconomics.

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Threadneedle Street raised interest rates for the first time in a decade in November, up from 0.25% to 0.5%, as the Bank's governor Mark Carney said the vote to leave the European Union had constrained the speed at which the United Kingdom could grow before prices begin to spiral. That said, the rate of decline was modest. The UK recorded a growth rate of 0.4% in the three months to September, much lower than the U.S. and eurozone during the same period.

Growth in the UK's dominant sector missed expectations in November, a closely-watched index has shown.

Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, a financial data analysis firm in London, told Xinhua: "The average level of the PMI in Q4 so far is consistent with output holding steady, following quarter-on-quarter declines of 0.6 percent in Q2 and 0.9 percent in Q3". She said that inflation fuelled by a weak pound would gradually fade, putting consumer spending on a firmer footing.

"Business optimism across the construction sector remained relatively subdued, but picked up from the near five-year low seen in October", Tim Moore, Associate Director at IHS Markit, said.

Williamson said the data were consistent with fourth quarter economic growth of 0.8% for the euro zone, faster than many of its peers and more optimistic than the 0.6% predicted by a Reuters poll last week.

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