Key facts
- Euro zone private sector growth hit a four-month low in October.
- French economic contraction and political turbulence contributed to the slowdown.
- Input costs surged due to higher energy, fuel, and transport prices.
- Business confidence in the euro zone fell to a five-month low.
Growth across the euro zone's private sector slowed to its weakest pace in four months in October, driven by an energy-driven rise in costs and a renewed contraction in France amid political and financial pressures, a survey showed. The S&P Global Flash Eurozone Composite PMI Output Index fell to 51.9 in October from September's 53.1, its lowest reading since June and lower than all forecasts. Input costs accelerated for the second consecutive month linked to higher energy, fuel and transport costs, partly due to the Middle East war. Higher interest rates are also starting to take a toll, dampening demand. France's PMI pointed to economic contraction and business confidence hit its lowest since 2012 outside the pandemic period. New export orders rose for a third consecutive month, an encouraging sign after nearly 4-1/2 years of continuous monthly declines. Hiring came close to a standstill with employment barely rising.