RTTN:Eurozone Private Sector Contracts More Than Expected In October
Eurozone's private sector contracted at a slightly fastest pace than initially estimated in October, signaling that the downturn in the economy has deepened at the start of the fourth quarter, final data from a survey by Markit Economics showed Tuesday.
The composite output index, which measures performance of the manufacturing sector as well as the service sector, dropped to 45.7 in October from 46.1 in September. The latest figure was slightly lower than 45.8 seen in flash estimates, and marked the ninth successive fall. A reading below 50 indicates contraction in the sector, while one above suggests growth.
Steep contractions in output were signaled for Spain, France and Italy in October, although the rates of decline eased slightly in each of these nations compared with one month earlier. The downturn in Germany was less severe overall, but nonetheless faster than that seen in September.
At the same time, the seasonally adjusted purchasing managers' index (PMI) for the service sector came in at 46 in October, lower than 46.2 initially estimated. In September, the reading was 46.1.
"Sentiment is still being hit hard as companies worry about the dual impact of weak domestic demand and a slowing global economy," Markit Senior Economist Rob Dobson said.
"This is likely to hit growth in the coming months, especially at a time when cost-caution at manufacturers and service providers is filtering through to the wider economy through rising job losses, reduced purchasing and inventory depletion."
