Dow Jones Newswires: Eurozone flash PMIs point to GDP contraction in 3Q
The Eurozone economic downturn deepened in September with business activity contracting for a third consecutive month, S&P Global said.
The eurozone composite purchasing managers index fell to 48.2 in September from 48.9 in August, according to the preliminary reading. This is in line with the forecast of economists polled by The Wall Street Journal.
Readings below 50 point to a contraction in activity.
“The early PMI readings indicate an economic contraction of 0.1% in the third quarter, with the rate of decline having accelerated through the three months to September to signal the worst economic performance since 2013, excluding pandemic lockdown months,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said.
Worsening performances were seen in both manufacturing and services, with demand falling at steepening rates in each sector as a result of the rising cost of living and growing gloom about future prospects, the report said.
With demand slumping and companies growing increasingly pessimistic about the outlook, the survey’s forward-looking indicators point to a steepening economic decline for the eurozone in the fourth quarter, adding to the likelihood of the region falling into recession, Mr. Williamson said.
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