Eurozone October final services PMI 48.6 vs 48.2 prelim

Previous 8.8 Composite PMI 7.3 vs 7.1 preliminary Previous 8.1 The eurozone economy shrank the most in nearly two years as new orders collapsed amid uncertainty, high prices and generally weak demand. . SandP Global reports that: “Following the third quarter PMI data and the official GDP data, the latest results of the first quarter survey suggest that the Eurozone economy is now going into hibernation . High inflation weakens demand and undermines business confidence Uncertainty feeds and decision-making also becomes more difficult due to the fear of a worsening of the energy crisis in the winter season „At the same time, the ECB wants to continue to tighten monetary policy to curb inflation. October PMI data show that inflationary pressures remained very high across the euro area. However, we detected golden tones in the rhetoric surrounding the ECB’s October policy decision, which clearly indicates that the Governing Council is concerned about the rapidly deteriorating economic outlook. A noticeable deterioration of the economic situation in the coming months may make it difficult for the decision-makers to decide on the path of monetary policy tightening, because there are fears of becoming too aggressive and prolonging the recession.

Steve Walker

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