World · Malaysia Bureau
Eurozone business growth momentum weakens in October
Economic activity in the eurozone lost steam in October as business confidence cooled, with key performance indicators showing a notable pullback from the previous month's pace.
LSN Malaysia ·
The eurozone's economic expansion slowed last month, signalling potential headwinds for the 20-member currency bloc. The purchasing managers' index, a closely watched gauge of business health compiled by S&P Global, fell to 51.9 in October from 53.1 the previous month, reflecting diminished momentum across the region's services and manufacturing sectors.
The index measures activity among purchasing managers at hundreds of companies and serves as a leading indicator of economic performance. A reading above 50 indicates expansion, while figures below that threshold signal contraction. October's decline, though still in expansionary territory, suggests that business optimism and activity levels are losing traction as the year progresses.
The slowdown comes amid persistent concerns about inflation, interest rate pressures, and geopolitical uncertainties affecting European economies. The softer PMI reading points to growing caution among businesses regarding near-term economic prospects and investment decisions, potentially weighing on employment and consumer confidence across the eurozone in coming months.