The latest data from the purchasing managers’ survey indicates that business activity in the eurozone continued to contract in September. However, there is a glimmer of hope as the contraction slowed down compared to previous months. The survey shows that new orders dropped at the fastest pace since November 2020.
The HCOB Flash Eurozone Composite PMI Output Index, which measures activity in the manufacturing and services sectors, rose to a two-month high of 47.1 in September, up from 46.7 in August. Although this index still indicates contraction, it fared slightly better than economists’ expectations. Economists polled by The Wall Street Journal had predicted a dip to 46.5.
In separate reports, French PMIs revealed that the country’s economy contracted at its sharpest rate in nearly three years. German PMIs also showed a contraction, although it was less severe than in the previous two months.
Despite these concerning trends, there is some cautious optimism that the eurozone’s business activity may be stabilizing. However, it is crucial to closely monitor ongoing developments and assess their potential impact on the region’s economic recovery.
