German confidence rose to an eight month high, while French composite index revised down to a three-month low

German confidence rose to an eight month high, revised up on higher manufacturing PMIs, while French composite index was revised down to a three-month low. In Germany, composite PMIs were revised up to 55.2 (+0.3 point), on stronger new orders. Services PMIs were unchanged at 55.6, a 14-month peak, but the new business index was revised up 0.5 point to 56.3, posting a solid rise in November. Panelists reported that this positive outcome was due to improved liquidity and increased marketing efforts. 

Improving forward-looking components, in both the manufacturing and service sectors, suggest that German economic activity could strengthen at the end of 2015. The composite PMI-based GDP indicator points to a 0.6% q/q growth, much higher than the 0.3% q/q forecast. Reversely. 

French composite PMIs were revised down 0.3 point to 51.0, with the downward revision being equally driven by manufacturing output and services. Details of the services sector show that most of the services downward revision and decline in November was due to weaker outstanding business. 

The latter being in turn driven primarily by lower confidence in the hotel and restaurants sector, with some panelists mentioning the negative impact of the Paris terrorists attacks. Otherwise, quite encouragingly, new orders edged up to a five-month high (52.5) - although it remained well below the long-term average. Overall today's data pushed down the Q4 PMI-based indicator to 0% q/q, significantly shy of the 0.4% projections.