Source: Sharecast
The final S&P Global Eurozone composite PMI output index came in at 51.7. Although still in positive territory, it was down on September’s 53.7 and the first decline since May. Consensus had been for 51.9.
Within that, the services PMI business activity index slowed to 51.4 from 53.0 a month earlier, while the manufacturing PMI output index eased to 52.8 from 53.6.
Respondents pointed to lacklustre growth in new orders, output price inflation reaching historically high levels and cost pressures at their sharpest since May.
Among individual member states, Germany, Italy, Spain and Ireland remained in positive territory, although the rate of expansion lost momentum across all four countries.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the data suggested the Eurozone economy was growing at a "respectable but unexciting" rate of 0.3% following a robust third quarter.
But he warned: "However, there are worrying signs that the recent growth spell could be losing momentum. New business inflows have slowed to near-stagflation after three months of solid sales growth, and business growth expectations have slipped to their lowest since May.
"Businesses are being buffeted by three headwinds stemming from inflation, geopolitical uncertainty and higher borrowing costs.
"While the markets have been pricing in a near certainty of a further rate hike from the European Central Bank in December, any further slowing of the growth trajectory may sow some doubts as to the need for more tightening as we head into 2027."
The composite PMI output index is a weighted average of the manufacturing output index and the services business activity index. A reading above the neutral 50.0 benchmark indicates growth while one below it suggests contraction.
Surveys were sent to panels totalling around 5,000 manufacturers and service providers in eight countries, with data collected between 12 and 27 October.