The Eurozone services PMI edged down to 48.6 points, S&P Global data showed on Friday, whereas the composite fell more – to 47.3 – dragged down by gloomy manufacturing.
While Italy’s services PMI also declined to 46.4, leaving the composite down to 45.8. In Spain the services PMI rose to 49.7, but the composite fell to 48. Today’s Eurozone data were slightly better-than-expected, as German and French PMIs were revised up from the flash. But this does not make the outlook rosier.
GDP doesn’t limit worries on the Eurozone economy
Indeed, while GDP surprised to the upside in Q3, high-frequency data suggest that the eurozone is headed for a recession this winter. Amid elevated inflation denting purchasing power and high energy and production costs dampening manufacturing.
Italy among the worst in the euro area
In Italy, service firms lamented lower orders and demand due to high prices and uncertainty. As a result, expectations were at a nearly two-year low. While higher costs were passed on to clients, the ability to do so was limited by the weakness of demand and by competitive pressures.
Despite the improvement in the headline number, the details of the Spanish services survey are not encouraging either; future prospects remain gloomy, amid high uncertainty and price pressures.
If Italy cries, Germany and France don’t smile…
In September, French industrial production fell, with a widespread decline across categories. While German industrial orders dropped, but real turnover edged up, suggesting that easing bottlenecks and large backlogs will soften the immediate impact on output from lower orders.
https://blinktrades.com/final-pmis-confirm-eurozone-growth-is-losing-steam/