17:24 22 September 2023
PMI suggests a decline in the Eurozone economy in Q3
The Eurozone economy is likely to experience a decline in the current quarter, as indicated by very weak PMI readings that assess the state of activity in various sectors.
The latest PMI reading for the Eurozone economy showed a slight improvement in September compared to August, rising to 47.1 points. The reading was better than the market consensus of 46.5 points. However, for the fourth consecutive month, it remained below the threshold of 50 points, indicating contraction rather than expansion.
The situation in the industrial sector looks particularly grim, as it has been contracting for 15 consecutive months in September. The PMI, reflecting the activity in this sector, weakened to 43.4 points from 43.5 points in August, while an increase to 44 points was expected.
On the other hand, the services sector, which dominates the economy and supported it in the first half of the year, also remained in contraction territory. However, the PMI increased to 48.4 points, surpassing the median forecast of 47.7 points. In August, it was at 47.9 points.
