A survey showed that the volume of business activity in the euro area contracted at a less than expected pace at the end of last year as price pressures eased, indicating that the recession in the region may be less than expected. The Standard & Poor’s Global Purchasing Managers’ Index for the eurozone, which measures economic performance, rose to 49.3 in December, up from 47.8 in November, more than an initial forecast of 48.8. Although the index has not crossed the 50 mark that separates growth from contraction since July, it hit a five-month high in December. The final data was collected earlier than usual last month due to the New Year holidays. “The survey results do not provide strong evidence that the eurozone economy may return to its intended and stable growth anytime soon,” said Joe Hayes, chief economist at Standard & Poor’s Global. A Archyde.com poll conducted in December predicted the region’s economy would shrink 0.3% in the fourth quarter and 0.4% in the first quarter of 2023.
