EUROZONE PMI FALLS TO 51.9 AS EUR/GBP HITS FRESH LOWS
The Eurozone’s preliminary October composite PMI fell to 51.9 from 53.1 in September, missing the market consensus of 52.7 and marking its lowest level since June. Activity slowed in both services and manufacturing, although the index remained above 50, indicating continued overall expansion.
Ebury says firms are feeling the pinch from rising energy costs and expectations of higher ECB interest rates. France was a notable drag, with business activity returning to contraction amid concerns about the country’s fiscal outlook.
The euro has been languishing at its weakest levels against the US Dollar since May 2025 and slid to 18-month lows against sterling, according to Ebury. Ebury points to a slowing Euro Area against a resilient UK.
In contrast, the UK’s preliminary October composite PMI rose unexpectedly to 53.1, its highest level since February, ahead of next week’s Autumn Budget.
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