The IHS Markit Eurozone Services PMI was revised higher to a four-month high of 52.8 in December 2019 from a preliminary estimate of 52.4 and above the previous month's final reading of 51.9. New work growth picked up, despite a persistent decline in new export business, and outstanding business increased for the first time in five months. Meanwhile, employment continued to rise, but at its softest pace since the start of 2019. On the price front, input cost inflation was little-changed at a marked level on the back of rising staffing costs, while output charges were up only slightly, squeezing margins. Looking ahead to the coming 12 months, business confidence about the future strengthened to its highest level since July, led by a strong improvement in sentiment amongst German service providers. Services PMI in the Euro Area averaged 52.04 points from 2007 until 2019, reaching an all time high of 58.30 points in June of 2007 and a record low of 39.20 points in February of 2009. source: Markit Economics
Services PMI in Euro Area is expected to be 52.60 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in Euro Area to stand at 53.30 in 12 months time. In the long-term, the Euro Area Services PMI is projected to trend around 54.00 points in 2020, according to our econometric models.