Eurozone Composite PMI down to 49.4 in October

Friday, 23. October 2020 10:00

The Eurozone private sector activity declined in October to a four-month low, with the Composite Purchasing Managers' Index standing at 49.4, a report released by IHS Markit's on Friday showed.

The services activity PMI dropped to 46.2, while the manufacturing PMI and the output PMI decreased to 54.4 and 57.8, respectively. The rate of job losses across the euro area slowed. However, forward-looking indicators worsened. New business showed a renewed decline, while confidence slipped to the lowest point since March.

"The eurozone is at increased risk of falling into a double-dip downturn as a second wave of virus infections led to a renewed fall in business activity in October," Chief Business Economist Chris Williamson said in the press release. He warned that "while the overall downturn remains only modest... the prospect of a slide back into recession will exert greater pressure on the ECB to add more stimulus and for national governments to help cushion the impact of COVID-19 containment measures."

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