Eurozone business activity grew in September at the second-weakest rate since late-2016, as manufacturing growth was subdued by export orders stagnating for the first time in over five years.
The IHS Markit Eurozone Purchasing Managers’ Index (PMI) fell from 54.5 in August to 54.2 in September. Although still well above the 50.0 nochange level, the latest reading was the lowest since November 2016 with the exception of last May.
The slowdown was driven by weaker growth in the manufacturing sector, where production increased at the slowest rate since May 2016. New orders
received by factories showed the joint-weakest rise since February 2015 as new export orders failed to grow for the first time since June 2013.
- New order inflows were the joint-weakest since October 2016
- Backlogs of uncompleted orders rose at the slowest rate since September 2016
- Manufacturing costs rose at the joint-slowest rate for just over a year
- Input cost inflation remained elevated, picking up slightly to the third-highest for over seven years
- Average selling prices rose at an identical pace to the solid gain recorded in August, though likewise remained high by standards of the
past seven years
Across the region, growth slowed in Germany and France but both continued to outperform the rest of the eurozone as a whole, where the pace of expansion held close to two-year lows.
Source: Markit economics, https://www.markiteconomics.com