Eurozone October PMIs Disappoint the Markets
The growth of business activity in the Eurozone lost momentum much more than expected in October, amid the escalating trade war between the United States and China and Italy’s controversial budget. Today’s data showed, that the composite output index, which measures the combined output of both the manufacturing and service sectors came in at a 25-month low of 52.7 from 54.1, compared to expectations for 53.9.
The preliminary reading of the Markit manufacturing purchasing managers’ index (PMI) fell to a 26-month low of 52.1 in October from 53.2 in September. The services PMI slowed to a 24-month low of 53.3 in October from 54.7 a month earlier, compared to expectations for 54.5.
Meanwhile, companies’ expectation index, which measures business optimism, fell from 62.1 to a nearly four-year low of 59.4.