The eurozone economy was on the verge of stagnation in October, although some countries recorded improvements, according to the final composite supply managers' index (PMI) of “S&P Global” (S&P Global), the agency reported.
The index was at 50.0 points, compared to estimates of 49.7 points and 49.6 points in September.
The services sector index reached 51.6 points versus 51.4 points in September, but concerns of a contraction in the entire quarter remain for now, according to economists.
“Moderate expansion of the services sector is key to keeping the eurozone out of recession,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. According to him, decreasing inflation and wage growth increase consumption, which is reflected favorably in the service sector. However, he pointed out that forecasts suggest a “slight contraction” of overall production in the Eurozone in November.
Among individual countries, Spain performed best – the combined PMI index in the country reached 55.2 points. Followed by Ireland with 52 points and Italy with 51.0 points, the highest in four months.
The German index improved slightly to its highest level in three months at 48.6 points, although it was still in contraction territory.
France, however, hit an eight-month low of 48.1 points.