The European Central Bank (ECB) cut one of its key interest rates this month and extended quantitative easing after updated projections showed that the region's inflation rate would rise slower than previously anticipated. The Purchasing Managers' Index (PMI) figure for December fell to 54, down from November's figure of 54.2, according to Markit. The single-currency bloc's flash services PMI printed at 53.9, below an anticipated 54. The index, which measures the services activity in France, slipped to 50 from last month's 51 its lowest point since January, while a manufacturing measure unexpectedly increased from last month's 50.6 to 51.6. In a country breakdown, Markit said top exporter Germany recorded its strongest quarterly growth for a year and a half as Europe's biggest economy rose gained 0.5 percent in the fourth quarter. While new business in services was damped by the attacks, the manufacturing sector picked up momentum, he said. The overall flash PMI missed forecasts of 54.2, coming in at 54. A slowdown in dominant service sector drove the downward numbers with some panelists saying that new business intakes were impacted following the terrorist attacks. That was thanks to a surprise surge in the French manufacturing sector in December. He expects growth in the final three months of the year of 0.5 per cent after the 0.3 per cent achieved in the third quarter, pushing this year's overall GDP up by 1.5 per cent. The euro was mostly unfazed by the flash PMI readings as traders are focused on today's FOMC announcement later in the US. Against the yen and the pound, the euro was up on Tuesday's close but below earlier peaks at 133.18 yen and 0.7270 pounds. WakeyWakeyNews http://wakeywakeynews.com/37912/eurozone-pmi-edges-down-in-december
