Eurozone business activity sflat in Q4 ’24 – PMI

Eurozone business activity reported stagnant growth at the start of fourth quarter of 2024, with the Composite PMI Output Index held at 50.0 in October, signalling no net change in private sector output.

This minor improvement from September’s 49.6 fell below the long-term average of 52.5, underscoring ongoing demand weakness and a notable decline in employment—the sharpest since December 2020.

Economic conditions diverged sharply between sectors and countries. Services activity rose for a ninth consecutive month, while manufacturing output contracted, weighed down by significant declines in Germany and France.

In contrast, Spain led growth in the euro area, with Ireland and Italy showing modest upturns.

Persistent demand struggles saw private sector orders shrink for the fifth month, with exports dropping for the 32nd consecutive month.

Benign cost pressures continued, with input price inflation near a four-year low. Business confidence slipped further, marking a fifth consecutive decline to its lowest level this year.

Attribution: HCOB PMI 

Subediting: Y.Yasser

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