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Eurozone Economic Growth Cools to Five-Month Low

October 5, 2021 by Forex Winner Leave a Comment

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.

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