(IHS Markit) The Eurozone output growth in the services and manufacturing sector grew at the slowest pace in six months in October, with the output index dropping to 54.2 from 56.2 in September.
The growth in the service sector surpassed that of the manufacturing sector, which was weighed down by input shortages and supply chain bottlenecks.
The growth in new orders was the slowest in six months while the rate of export business leveled out with that of September, driven by demand for Eurozone goods and services abroad.
Work backlogs rose sharply, especially in the manufacturing sector, due to supply shortages and lengthened supplies delivery time. Reduced staff shortages saw a decline in service backlogs.
Growth in employment was the fastest overall in over 20 years. Staffing levels in the service sector surged the highest since 2007.
Supply chain bottlenecks led to a record input price inflation. Companies shifted the high cost to consumers causing an equivalent output price inflation.
Ireland was the leading economy in the euro area as growth hit a two-month-high, while Germany had the slowest growth in both business activity and manufacturing.
Business confidence remained stable at levels higher than historical averages boosted by the positive trends of the service sector.
DAX is up +0.38%, EURUSD is down -0.54%.
