Eurozone Private Sector Growth Weakest Since Mid-2013
October 03 2019 - 12:58AM
RTTF2
The euro area private sector expanded at the slowest pace in
more than six years in September, final data from IHS Markit showed
Thursday.
The final composite output index fell to 50.1 in September from
51.9 in August. The reading was below the flash estimate of
50.4.
September's figure was the lowest since June 2013 and signaled a
broad stagnation of the private sector economy at the end of the
third quarter of 2019.
Manufacturers logged the sharpest fall in output for nearly
seven years in September. Although the service sector continued to
expand, the pace of growth was the weakest since the start of
2019.
The services Purchasing Managers' Index came in at 51.6, down
from 53.5 in the previous month and the flash 52.0.
The growing risk of recession, coupled with a further moderation
of inflationary pressures, will add to expectations that the
European Central Bank will need to do more to stimulate the economy
in coming months, Chris Williamson, chief business economist at IHS
Markit said.
National data showed Germany slipping into contraction territory
in September for the first time since April 2013. Italy and France
registered only marginal increases in economic output, whilst
growth weakened in Spain.
Germany's composite PMI fell to an 83-month low of 48.5 from
51.7 a month ago. The flash score was 49.1. Signaling the weakest
growth for three years, the services PMI slid to 51.4 from 54.8.
The reading was below the preliminary 52.5.
France's composite output index dropped to 50.8 from 52.9 in
August. This was also below the preliminary reading of 51.3 and
suggested the slowest pace of expansion since April. Likewise, the
services PMI posted 51.1 versus 53.4 in August and the flash score
of 51.6.
Italy's private sector expanded for the fourth straight month.
The composite output index posted at 50.6 in September, up from
50.3 in August.
Central to the quicker rise in Italian private sector output was
a faster expansion of service sector activity. The corresponding
services PMI rose to 51.4 from 50.6 a month ago.
In Spain, private sector grew moderately as the manufacturing
downturn deepened and the service sector growth softened in
September.
The composite PMI slid to 51.7 from 52.6 in August. The reading
matched July's 68-month low. The services PMI registered a reading
of 53.3 compared to August's 54.3.
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