The index S&P Global’s preliminary manufacturing PMI for the Eurozone has fallen four tenths in October, falling to 43 from 43.4 points in September and reaching its lowest level in three months. The result disappoints the expectations of the market, which expected a rebound to 43.7.
The index Services PMI has fallen nine tenths, standing at 47.8 compared to the previous and expected 48.7 points. This is your lowest score in 32 months.
According to the S&P Global statement, the Eurozone economic slowdown accelerated at start of fourth quarteraccording to provisional data from the October PMI survey, and the Private sector production declined at the steepest rate in more than a decade if pandemic-affected months are excluded. New orders also fell at a rapid pace, pointing to a worsening demand environment for both goods and services. As a result, companies cut jobs, marking the first drop in workforce since the closures in early 2021, and continued to focus on inventory management to reduce costs.
Despite some upward pressure on costs from rising oil prices, the goods and services inflation rate moderated slightly in October, to its lowest level since February 2021. The ongoing sharp decline in sales prices of the manufacturing sector was accompanied by a moderation in the inflation of sales prices of the services sector.
EUR/USD reaction
EUR/USD accelerates its decline after weak Eurozone PMI data. Previously, the single currency had already weakened with the release of German PMI data. The pair has fallen nearly 30 pips in less than an hour, retreating to 1.0647, new daily low. At the time of writing, the EUR is trading against the USD above 1.0649, losing 0.19% on the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
