Euro zone business activity continues to weaken in October

The preliminary composite euro zone Purchasing Managers’ Index (PMI), compiled by S&P Global, nudged up to 49.7 in October from September’s 49.6 but remained below the 50 mark that separates growth from contraction for the second month in a row.

Business activity in Germany, Europe’s largest economy, shrank in October but less steeply than in September. In France, the currency union’s second largest economy, the services sector contracted at its sharpest rate in seven months, dragged down by sluggish new orders.

The decline in manufacturing in the union, which has lasted for more than two years, continued, although it was less severe than in September. The factory PMI rose to 45.9 from 45.0, exceeding poll expectations for a more modest rise to 45.3.

Source: reuters.com