The economic slowdown in the eurozone has gotten worse as a result of high prices and worries about an escalating energy crisis. Which adds to the evidence that the region is head for a winter recession. The euro zone’s business activity shrank at its sharpest rate since late 2020 in October.
According to a monitored closely report. As international demand fell in September, German industrial orders also fell more than anticipated, placing the biggest economy in Europe on the verge of recession.
The final composite S&P Global Purchasing Managers’ Index (PMI) for eurozone. Which is seen as a reliable indicator of economic health, dropp from September’s reading of 48.1 to 47.3 in October, just above an initial estimate of 47.1.
Anything less than 50 signifies contraction.
According to Jack Allen-Reynolds of Capital Economics. “The final eurozone crisis PMIs for October reflect a clear image of declining activity and soaring inflation.”
“New orders and prospective output PMIs signal that worse is to come.” The author writes, “even though it does not yet indicate to the 0.5% q/q decline that we have factored in for Q4.”
A survey conducted in October, 22 of the 46 participants were ask. Which type of recession that euro zone will experience. 15 indicated it would be prolong and mild. Only one predicted a long and deep one, while eight predicted a short and deep one.
Although prior statistics from France, the second-largest economy in the EU, revealed a fall in industrial output in September. Its PMI showed manufacturing and services growth slowed less as anticipated in October.