Eurozone Business Activity Growth Weakened in October

Forex News

Growing trade tensions and rising political uncertainty exerted pressure on the Eurozone business growth, which slowed to the lowest level in two years in October. IHS Markit's Eurozone Composite Final PMI dropped to 53.1 in October from September's 54.1, its lowest since September 2016. Meanwhile, the Eurozone services PMI fell to 53.7 in October from 54.7 in September, the lowest level since the beginning of 2017.

At the same time, Germany's services sector expanded more-than-expected at in October. The services PMI fell to 54.7 in October from September's eight-month high of 55.9. The latest reading was the lowest since July, but was above the flash estimate of 53.6. The composite PMI fell to 53.4 from 55 in September, but was above the flash reading of 52.7.

Economic growth in the Eurozone has slowed to its lowest level in over four years in the third quarter, as the region’s recovery runs out of steam. Eurozone GDP only rose by 0.2% in July-September, down from 0.4% in April-June.