INSUBCONTINENT EXCLUSIVE:
A PMI reading below 50 indicates ongoing contraction in the economy.The industrial PMI increased from 45 to 45.9, surpassing expectations of
In contrast, the services PMI dipped from 51.4 to 51.2, missing the anticipated 51.5.Cyrus de la Rubia, chief economist at Hamburg
Commercial Bank, noted that the eurozone remains stagnant, with slight economic contraction for the second consecutive month.He highlighted
deteriorating conditions in France and a modest easing of decline in Germany
(Photo Internet reproduction)The persistent pressure on wages suggests that inflation in the services sector is likely to remain high
This scenario strengthens the argument for a more cautious approach to interest rate cuts.Expectations are shifting to a reduction of just
to 48.4 in October from 47.5 in September, according to preliminary data from S-P Global and Hamburg Commercial Bank.This result exceeded
the consensus estimate of 47.6 but still indicates contraction since it remains below 50
The industrial PMI rose from 40.6 to 42.4, while the services PMI increased from 50.6 to 51.4, aligning with expectations.De la Rubia
remarked that the start of the fourth quarter showed better-than-expected results, with services growing faster and industrial decline
weaknesses such as high energy costs, increasing competition from China, and a labor shortage impacting the industrial sector.UK Faces
Declining GrowthIn the UK, the composite PMI fell to 51.7 in October, marking its lowest level in eleven months and down from 52.6 in
indicating continued growth
The industrial PMI decreased from 51.5 to 50.3, while the service PMI dropped from 52.4 to 51.8, both below projections.Chris Williamson,
chief business economist at S-P Global Market Intelligence, stated that business activity growth has reached its lowest point in nearly a
year.He attributed this decline to government pessimism and uncertainty ahead of the budget, which are affecting confidence and
to adopt a more aggressive stance on interest rate cuts if this downturn deepens further.Overall, while there are signs of slight
improvement within specific sectors across Europe, underlying challenges persist that could hinder sustainable growth moving forward.
