LONDON, Nov 6 (Reuters) - The downturn in euro zone business activity accelerated last month as demand in the dominant services industry weakened further, a survey showed on Monday, suggesting there is a growing chance of a recession in the 20-country currency union.
HCOB’s PMI, compiled by S&P Global and seen as a good guide of overall economic health, fell to 46.5 in October from September’s 47.2, its lowest reading since November 2020 when COVID-19 restrictions were tightened on much of the continent.
“Final PMIs released today confirmed the preliminary estimates and are consistent with our forecast that euro-zone GDP will contract again in Q4,” said Adrian Prettejohn at Capital Economics.
Manufacturing activity took a further step back in October, according to a sister survey last week which showed new orders contracted at one of the steepest rates since the data was first collected in 1997.
It was a similar picture for services and the new business index, a gauge of demand, was its lowest since early 2021 as indebted consumers feeling the pinch from price rises and increased borrowing costs kept their hands in their pockets.
Services activity in Germany, Europe’s largest economy, slipped back into contraction in October amid persistent weakness in demand while in France it shrank again.
The original article contains 435 words, the summary contains 211 words. Saved 51%. I’m a bot and I’m open source!
This is the best summary I could come up with:
LONDON, Nov 6 (Reuters) - The downturn in euro zone business activity accelerated last month as demand in the dominant services industry weakened further, a survey showed on Monday, suggesting there is a growing chance of a recession in the 20-country currency union.
HCOB’s PMI, compiled by S&P Global and seen as a good guide of overall economic health, fell to 46.5 in October from September’s 47.2, its lowest reading since November 2020 when COVID-19 restrictions were tightened on much of the continent.
“Final PMIs released today confirmed the preliminary estimates and are consistent with our forecast that euro-zone GDP will contract again in Q4,” said Adrian Prettejohn at Capital Economics.
Manufacturing activity took a further step back in October, according to a sister survey last week which showed new orders contracted at one of the steepest rates since the data was first collected in 1997.
It was a similar picture for services and the new business index, a gauge of demand, was its lowest since early 2021 as indebted consumers feeling the pinch from price rises and increased borrowing costs kept their hands in their pockets.
Services activity in Germany, Europe’s largest economy, slipped back into contraction in October amid persistent weakness in demand while in France it shrank again.
The original article contains 435 words, the summary contains 211 words. Saved 51%. I’m a bot and I’m open source!