Supply Constraints Drag Eurozone Growth to Six-Month Low in October

Source: IHS Markit

Growth in the Eurozone slowed to a six-month low in October, weighed down by the ongoing supply constraints. EZU is down 0.43% premarket.

• The IHS Markit Eurozone PMI Composite Output Index slipped to 54.2 in October, down from 56.2 the previous month and the lowest in six months.
• The latest reading reflects the third straight month of deceleration, and further easing from the 15-year high recorded in July.
• The services sector was the main driver of economic growth, while supply issues continued to hit manufacturing, particularly the autos sector.
• Slower growth was broad-based across the Euro area, with the weakest growth recorded in Germany and the fastest in Ireland.
• New business orders also slowed as demand fell to a six-month low, while export business growth was unchanged from the previous month.
• Backlogs jumped due to component shortages, while overall employment posted the fastest since data collection started in 1998.