Euro zone growth slows to 4-month low amid rising costs and French turmoil, PMI shows
Rising energy costs and weaker demand pushed the euro zone reading below forecasts, while French business activity contracted again amid political and financial pressure.
- Growth across the euro zone's private sector slowed to its weakest pace in four months in October, with the Global Flash Eurozone Composite PMI Output Index falling to 51.9 from September's 53.1.
- France faces renewed contraction amid political and financial pressures, with government borrowing costs jumping in recent weeks and street protests raising political temperature ahead of a spring presidential election.
- Manufacturing output dropped to 52.4 from 53.6, while Services PMI fell to a two-month low of 51.7 from 53.0; Hiring came close to a standstill with employment barely rising.
- "Input costs are rising sharply again," said Chris Williamson, chief business economist at S&P Global Market Intelligence, noting firms are pushing selling prices higher to protect margins amid energy-driven inflation.
- The European Central Bank will hold its deposit rate at 2.50% next week despite inflation running nearly double its 2% target, fueling speculation of more aggressive ECB policy tightening in December.
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38 Articles
Eurozone business activity slows as energy costs rise
Private-sector business activity across the eurozone slowed in October as rising energy costs and a fresh contraction in France weighed on growth amid political and economic pressures, according to a survey published on Friday. The preliminary S&P Global composite purchasing managers’ index (PMI) for the eurozone fell to 51.9 points in October, down from 53.1 […]
Eurozone Private Sector Growth At 4-Month Low
The euro area private sector softened to a four-month low in October as activity in France shifted back into contraction amid tightening financial conditions and rising political pressures, flash purchasing managers' survey data from S&P Global revealed Friday. The composite output index fell to 51.9 in October from 53.1 in the previous month, falling below the economist forecast of 52.7.
The October index records a minimum of the last four months, but "it continues to be one of the best results observed in the last three years," according to S&P Global Market Intelligence chief economist Chris Williamson.
RISING energy costs and interest rates slowed business activity in the euro zone in October to the lowest level since June, with business optimism falling.
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