Eurozone business growth slows in October

Eurozone business growth slows in October
Output expansion in both Spain and Italy recorded nine-month lows

Mubasher: Eurozone economic activity growth slowed last month coinciding with the downturn in service activities.

The Eurozone Purchasing Managers’ Index (PMI) report showed economic activity reached 56.0 in October, versus 56.7 in September, according to data released by IHS Markit on Monday.

An earlier flash estimate had indicated that economic activity in the Eurozone would reach 55.9 in October.

As for service level, Eurozone economic activity declined to 55 points in October, down from 55.8 points in September, but beat analysts’ estimates of 54.9.

“Although the rate of output growth eased slightly, it remained among the fastest registered over the past six-and-a-half years, while the pace of job creation was the best in over a decade,” Markit’s statement added.

Moreover, France topped the list of output growth in October for the first time since August 2011 as a result of its economic activity grew by its quickest pace in almost six years.

“The remaining four nations monitored all saw their respective rates of output expansion slow during the latest survey month,” Markit said, indicating that Germany’s growth eased to a two-month low, while Ireland recorded  an 11-month low.

Output expansion in both Spain and Italy recorded nine-month lows, the data showed, although “rates of increase remained above long-run averages in all cases.”

By 09:43 am GMT, the euro was down slightly against the dollar, slipping 0.03% to $1.1605.