PMI September 2019

Composite PMI drops to over six-year low in September

Leading indicators point to weakening dynamics in the Eurozone’s economy at the end of Q3. The Flash Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 50.4 in September, down from August’s 51.9 and marking the worst result in over six years. As a result, the PMI lies just above the 50-point threshold that distinguishes expanding business activity in the Eurozone.

The details of the release revealed a continued two-speed Eurozone economy. The manufacturing PMI dropped to the lowest level seen since 2012 and came in at 46.0 in September, signaling a sharp contraction in the sector. Meanwhile, the Services PMI Activity index remained solidly in expansionary territory, although fell to an eight-month low of 52.0, suggesting that contagion could be starting to spill over. New orders for both goods and services fell in September, while confidence was gloomy and employment rose at the slowest pace seen since the start of 2015.

Regarding the Eurozone’s two largest economies, Germany’s composite PMI dropping into contractionary territory in September, as the manufacturing PMI recorded the worst result since mid-2009 during the global financial crisis. France also saw its composite PMI drop, although it remained in expansionary territory. Elsewhere in the region, activity softened to the lowest result since November 2013.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest