European private-sector activity in the Eurozone took another hit in October as the Purchasing Managers’ Index, compiled by S&P Global, slumped to its lowest level since April 2013, excluding pandemic lockdowns, Bloomberg reported on Monday.
The Index fell to 47.1 this month, down from 48.1 in September, which was worse than economists had anticipated. A reading below 50 indicates a contraction. With business activity slowing, fears of a looming recession are mounting across the euro area.
The steepest activity losses have been reported in manufacturing, especially in energy-intensive sectors like chemicals and plastics but services output also dropped for a third consecutive month as consumers struggle with the cost-of-living crisis, according to data.
Demand for goods and services shrank as companies and households are facing pressure due to inflation, which is largely stemming from skyrocketing energy costs.
“The Eurozone economy looks set to contract in the fourth quarter given…
