France and Germany lead eurozone economic recovery

France and Germany are leading a recovery in business activity in the eurozone, although other smaller European countries are faring less well. A survey on Tuesday showed french business activity picking up for the first time for four months in November.

There’s been a significant increase in new orders in both countries for the first time in four months in November.

The Purchasing Managers Index (PMI) compiled by financial information group Markit stood at 56.8 points for November, up 1.9 points from October, when it had fallen to a 13-month low.

The results were bolstered by a sustained gain in manufacturing, with the biggest increase in new orders for more than 10 years.

Employment levels are also improving in the French private sector, with the fastest growth since Febuary 2008.

In the services sector, there was also an improvement but new business was growing more slowly than in the last 15 months.

Commenting on the figures, Markit says the flash PMI readings for November indicate that the eurozone regained some of the growth momentum that had been lost since July's peak.

However, growth remains very unbalanced, with smaller eurozone countries continuing to struggle with extremely tough conditions.