Weakness persists across most European sectors in October
By Josh White
Date: Tuesday 07 Nov 2023
(Sharecast News) - General demand weakness persisted across European sectors in October, with the latest S&P Global Europe sector purchasing managers' index (PMI) data indicating sluggish growth.
Out of the 20 sectors monitored, only two showed expansion, with software and services leading the way and other financials coming back.
Software and services companies experienced a surge in activity, marking their fastest growth since July.
Meanwhile, basic materials struggled, with the forestry and paper products sub-sector reporting the most significant contraction in production.
Chemicals, and metals and mining, also faced notable output declines.
Automobiles and auto parts manufacturers saw their production decline sharply, reflecting challenges in consumer purchasing power.
Household and personal products, as well as beverages and food, also experienced declines.
The consumer services sub-sectors faced a similar downturn, with tourism and recreation activity contracting acceleratedly.
Real estate within the financials category saw its activity decline at the fastest pace since November 2022.
Inflationary pressures varied across manufacturing and service sub-sectors, as goods-producing sectors generally saw steep drops in cost burdens, with discounts offered to boost sales.
Conversely, service sectors faced rising labour and transportation costs, which they passed on to customers, although at a slower pace.
October brought further challenges to the labour market as well, with just seven sub-sectors reporting job creation.
The increase in employment was mainly driven by service sectors, with technology equipment being the sole manufacturing-based sub-sector showing increased staffing numbers.
Reporting by Josh White for Sharecast.com.
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