Euro area economy likely to accelerate in Q4 15

Euro area "flash" composite PMIs for December surprised the market on down side as it reduced by 0.2 points to 54.0.

The service PMI inched down by 0.3 points and stood at 53.9 due to weak new business. Manufacturing PMIs, in contrast, strengthened for the third month by increasing 0.3 points to 54.4. 

"We see the growth acceleration implied by solid Q4 PMI surveys as unlikely and forecast the pace of growth to remain the same as in Q3 15 at 0.3% q/q. Elsewhere, we look for a marginal increase in manufacturing confidence (+0.1 point), while services PMI should decline to the tune of -0.7 points on average (Italy, Spain, Ireland)", says Barclays.