The final data published by HCOB showed that activity in the eurozone private sector stagnated in October amid further reductions in new orders and employment. Business confidence also slipped for a fifth month in a row to its lowest level in the year-to-date.
The eurozone composite PMI output index, which assesses the change in activity in the manufacturing sector and the service sector, rose in October to 50.0 points from 49.6 points in September. Economists had expected growth to 49.7 points. An index value of 50 points indicates no change in private sector output levels when compared with the month prior. As for the eurozone countries, France fell deeper into contract, but Germany's downturn cooled. Declines in activity in these two nations were sufficient to counteract growth elsewhere across the eurozone. Spain remained the fastest-growing euro area country, Ireland and Italy saw modest upturns, with the latter signaling a renewed expansion.
Meanwhile, the eurozone services PMI reached 51.6 (2-month high) compared to 51.4 in September and forecasts at 51.2.
The data also showed that new orders in the private sector declined again in October (for the 5th month in a row), but the rate of decline slowed slightly compared to September. Meanwhile, new export orders decreased for a thirty-second month in a row during October. The backlog of work declined again (for the 19th month in a row), as lower demand allowed firms to focus more resources on backlogged orders. Employment in the private sector also declined in October. Although the rate of job shedding was marginal, it was the joint-fastest since December 2020. Cuts to headcounts were exclusive to goods producers, although employment came close to stalling in the service sector. Meanwhile, business confidence weakened for the fifth month running and was at its lowest in the year-to-date. The rate of input price inflation held close to that seen in September and was the third-softest for nearly four years. Eurozone companies raised their prices charged, but only modestly and to the second-slowest extent since February 2021.