Eurozone business growth slows in October as energy costs rise and France contracts
Preliminary S&P Global figures showed eurozone private-sector growth losing momentum in October, with composite and services readings below Reuters poll forecasts.
Nicosia, Cyprus. Growth in the eurozone’s private sector eased in October as energy became more expensive and France returned to contraction, according to survey findings released on Friday. The slowdown came against a backdrop of political and economic pressures.
Composite index falls below expectations
S&P Global’s preliminary composite purchasing managers’ index (PMI) registered 51.9 points for October, compared with September’s 53.1, its weakest reading since June.
Economists surveyed by Reuters had forecast 52.7 points, anticipating a smaller decrease. The index nevertheless remained above 50, the threshold separating growth from contraction, indicating that private-sector activity continued to expand, albeit more slowly.
Services growth also weakens
The survey’s services PMI slipped to 51.7 points in October, a two-month low, after reaching 53.0 in September. That result also missed expectations: analysts in the Reuters poll had projected 52.5 points.
The survey findings indicated that higher energy expenses and France’s renewed weakness were holding back the eurozone’s economic momentum.
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