Supply Constraints Drag Eurozone Business Activity to Six-Month Low

Source: IHS Markit

Business activity in the Eurozone plunged to a six-month low in October, dragged by the supply constraints and ongoing issues brought about by the COVID-19 pandemic. EZU is up 0.54% premarket.

• The Flash Eurozone PMI Composite Output Index fell to 54.3 in October from 56.2 in September, while services activity fell to 54.7 from 56.4.
• Both readings are the lowest in six months, with the Flash Eurozone Manufacturing PMI Output falling to a 16-month low of 53.2 from 55.6.
• The Flash Eurozone Manufacturing declined to an eight-month low of 58.5 from 58.6 in September.
• Growth slowed down sharply in countries such as Germany, which recorded the lowest since February, and in France, with the weakest since April.
• New order growth inched higher in services, while manufacturing saw a slowdown. Overall, orders were the slowest since April.
• Weak factory output was attributed to the ongoing issues on supplies, with delivery times up to the highest in over two decades.