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Activity in the Eurozone slows down to four-month minimums with high costs and turbulence in France

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 23/10/2026, 10:11:24 UTC.

Briefings

October activity in the Eurozone slowed to its weakest pace in four months, driven by rising production costs and weak French economic confidence. The S&P Global Composite PMI fell 2.3% to 51.9, marking the fourth consecutive month of growth but the weakest in that sequence. French private production declined for the first time in ten months, while Germany and other Eurozone nations continued growth but at reduced intensity. Key indicators showed industrial production at a four-month low, services activity at a two-month low, and new orders growing at the slowest rate of the four-month period. Employment remained largely unchanged, with services employment hitting a five-month low. Chris Williamson from S&P Global noted that high inflation pressures and elevated interest rates are likely to fuel further speculation on an aggressive ECB tightening policy.

Key points

• The S&P Global Composite PMI fell 2.3% to 51.9 in October, marking the weakest pace of growth in four consecutive months.
• French private production declined for the first time in ten months, while Germany and other Eurozone nations continued growth but at reduced intensity.

Context

The Eurozone economy faces a difficult situation with French confidence at its lowest since 2012, excluding the pandemic. The S&P Global Composite PMI, calculated from surveys of approximately five thousand companies, indicates that the Eurozone economy is sliding into contraction. This finding is critical as it highlights the tension between economic growth and rising inflation pressures that could lead to more aggressive monetary tightening.

Limitations

Data for October is preliminary and subject to revision; final industry and services data will be released on November 2 and 4 respectively. Employment figures show residual increases in services but a five-month low in France. The evidence does not include the final composite PMI data, which is expected to be published later in November.

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