Eurozone composite PMI falls in September
By Iain Gilbert
Date: Wednesday 05 Oct 2022
(Sharecast News) - S&P Global's Eurozone composite PMI fell to 48.1 in September, down 0.1 points from its flash estimate and 0.8pts from the prior month, with both the services and manufacturing PMIs also posting monthly drops.
The manufacturing purchasing managers index was revised lower in September, down from a preliminary reading of 48.5 to a final print of 48.4.
September's PMI reading, down from 49.6 in August, marked the biggest contraction in factory activity since June 2020, with further slides seen in both output and new orders as a result of high energy prices and adjustments to firms' operating schedules due to lower order books.
Demand for goods from the eurozone dropped sharply amid high inflation and economic uncertainty that reportedly squeezed client appetite last month.
In terms of pricing, inflationary pressures picked up due to rising costs for energy. However, pressures arising from material shortages were said to have somewhat faded throughout September.
Business confidence also fell to its lowest level since May 2020, leading businesses to further slash purchasing activity in anticipation of more challenging conditions on the horizon.
The services PMI fell to 48.8 in September, down one point from August to the lowest level since February 2021.
Oxford Economics' Mateusz Urban said: "We expect the eurozone to fall into a recession, starting in Q3 and lasting three quarters. But despite the deteriorating outlook, inflation risks remain acute, as evidenced by surging costs reported by firms, as well as their continued ability to pass them onto consumers."
Reporting by Iain Gilbert at Sharecast.com
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