Eurozone business activity contracts to hit 8-month low
Business activity in the Eurozone contracted this month, hitting an eight-month low and undershooting forecasts, according to a closely watched survey of companies.
S&P Global’s flash purchasing managers' index, published on Monday, fell to 48.9, down from 51.2 in August. A reading below 50 signals a contraction. Analysts had expected a reading of 50.5, according to Reuters.
The fortunes of services and manufacturing sectors continued to diverge. Services activity expanded, with the gauge recording 50.5, while manufacturing output came in at 44.5, down from 45.8 in August.
“The reduction in overall business activity was driven by a deepening downturn in the eurozone manufacturing sector, where production decreased for the 18th month running and at the fastest pace in the year to date,” S&P Global said.
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