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- October saw the euro area economy expand at its slowest rate for more than two years
October saw the euro area economy expand at its slowest rate for more than two years
October saw the euro area economy expand at its slowest rate for more than two years, according to the final IHS Markit Eurozone PMI Composite Output Index. Despite coming in higher than the earlier flash estimate of 52.7, October’s final reading of 53.1 was down from the previous month’s 54.1 to the lowest since September 2016.
Chris Williamson, Chief Business Economist at IHS Markit said: “Eurozone companies reported a disappointing start to the fourth quarter. Business activity is growing at its slowest rate for over two years and expectations have slumped to the bleakest since the end of 2014. “An export-led slowdown, linked to growing trade tensions and tariffs, has been exacerbated by rising political uncertainty, growing risk aversion and tightening financial conditions. The slowdown has consequently become more broad-based to increasingly envelop the services economy. “While the PMI numbers hint at an upward revision to the 0.2% flash estimate of third quarter GDP growth, it’s clear that the economy has slowed and that the weakness has intensified into the fourth quarter”.
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