Eurozone Private Sector Growth Moderates

(RTTNews) - The euro area private sector growth moderated to a four-month low in October as new order receipts came close to stalling and output price inflation remained historically high, final purchasing managers' survey data from S&P Global showed Wednesday.

The final composite output index fell to 51.7 in October from 53.1 in the previous month. The flash reading was 51.9.

Although this was the first fall since May, the indicator remained in growth territory, extending the current period of expansion to four months.

"October's PMI survey data indicate that the eurozone economy is growing at a respectable though unexciting 0.3% rate at the start of the fourth quarter, building on the robust performance seen throughout the third quarter," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

There was a broad-based growth slowdown as both manufacturing and services output increased at softer rates. The final services Purchasing Managers' Index dropped to 51.4 from 53.0 in the previous month. The reading was below the flash 51.7.

The member state breakdown revealed continued growth trajectories in Germany, Italy and Spain. On the other hand, France recorded a renewed contraction in economic activity.

Germany's private sector growth moderated from September's 11-month high. The composite output index dropped to 53.4 from 53.8 in the previous month. The flash score was 52.8.

At the same time, the services PMI fell less than estimated to 52.5 from 52.9. The initial estimate was 51.7.

France's private sector expansion proved to be short-lived as the composite output index fell at the fastest pace since May. The composite output index registered 46.6, down sharply from 51.1 in the prior month and below the flash estimate of 48.4.

The services PMI registered 46.2 compared with 51.2 in the previous month. The initial score was 48.4.

Growth in Italy's private sector softened in October as a faster reduction in manufacturing offset a pick-up in growth of services activity. The composite output index edged down to 50.8 from 51.0 in September. Meanwhile, the services PMI ticked up to 52.0 from September's three-month low of 51.7.

Elsewhere, Spain recorded activity growth for a sixth successive month in October. The composite output index posted 56.2, down from 56.8 a month ago. At the same time, the services PMI dropped to 57.2 from 58.3 in September.