Eurozone Economic Growth Cools to Five-Month Low

Source: IHS Markit

Eurozone economic growth slowed to a five-month low in September, as supply constraints continued to hit production. 

• The IHS Markit Eurozone PMI Composite Output Index stood at 56.2 in September, lower than 59.0 in August. This is the lowest reading since April.
• The Eurozone Services Business Activity Index fell to 56.4, also from 59.0 in August.
• Services activity expanded at a faster rate than manufacturing for the first time since the COVID-19 pandemic hit, indicating sensitivity to supply shortages.
• Demand for goods and services and output grew for the seventh straight month, albeit at a slower rate.
• Goods producers saw an improvement in sales growth due to the export demand, while international sales posted minimal gains during the month,
• Employment growth accelerated, particularly in Ireland, but capacity issues continued as work backlogs increased for the seventh straight month.
• Business optimism for the year ahead also fell to the lowest level in seven months since February.