Eurozone: PMI falls to over two-year low in October
November 6, 2018
Leading data suggests that the Euro area’s economic momentum lost steam in October. The Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from September’s 54.1 to 53.1—the worst result since September 2016. Despite the fall, the composite PMI lies well above the 50-threshold, signaling expanding business activity in the Eurozone.
Both the manufacturing and services sectors PMIs fell in October, leading to the decrease. New business growth lost steam amid slower orders from abroad, likely linked to global trade tensions. Business confidence also slipped in the month, while price pressures rose underpinned by higher global energy prices.
Regarding the two largest Eurozone economies, Germany’s composite PMI fell to a five-month low, while France’s rose in October.