The Markit’s services PMI for the euro zone has fallen to 54.6 points in October from 56.4 in September, slightly worsening expectations that placed it at 54.7. This is the third consecutive month of declines in the indicator, which has reached its lowest level in six months, specifically since April.
According to the statement from IHS Markit, “The Services sector continued to be the main engine of economic growth at the beginning of the fourth quarter, even though expansion weakened. Meanwhile, material shortages and supply bottlenecks restricted manufacturers’ output, particularly in the automotive sector. “
“The slowing trend in business activity was also reflected in new orders during October. Eurozone demand for goods and services increased to the softest degree in six months as order book growth weakened from That said, new export business grew strongly and at a rate that was unchanged since September. Flexibility in travel restrictions reportedly supported faster growth in demand for services from international clients. “
Market reaction
The EUR/USD it has extended its retracement in the early hours of the European morning, falling to 1.1549, a new three-day low. In total, the pair has lost more than 65 pips from the early Asian daily high at 1.1616. At the time of writing, the euro is trading against the dollar over 1.1552, losing 0.51% daily.
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