Euro zone growth slows to 4-month low as costs rise and French strife weighs, survey shows
SPY•The euro zone’s private-sector growth slowed to a four-month low in October, with the composite PMI falling to 51.9 from 53.1 in September. Input costs accelerated, new-order growth weakened and hiring nearly stalled.
1. Growth slows in October
The S&P Global Flash Eurozone Composite PMI Output Index fell to 51.9 in October from 53.1 in September, its lowest reading since June and below all forecasts in a Reuters poll, which had predicted 52.7. A reading above 50 indicates growth.
2. Costs and confidence
Input costs accelerated for a second consecutive month, linked in part to higher energy, fuel and transport costs. Firms raised selling prices more slowly than in September. Business confidence fell to a five-month low, with optimism dropping most sharply in manufacturing.
3. Orders and employment
New orders grew at their slowest rate in the current four-month expansion, though new export orders rose for a third consecutive month after nearly 4-1/2 years of monthly declines. Hiring came close to a standstill, as services job creation eased and manufacturing payrolls edged down.
