Indicators

Euro-Zone Downturn Deepens, Making Recession More Likely

  • Composite PMI falls to 47.1, economists had expected 47.6
  • Steepest downturn in manufacturing, services fall accelerates

Storage tanks at a chemicals plant in Herten, Netherlands. 

Photographer: Olivier Matthys/Bloomberg
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Private-sector activity in the euro zone contracted for a fourth month in October, reinforcing expectations that the bloc is headed for a recession.

An index of purchasing managers compiled by S&P Global slumped to its lowest level since April 2013, barring months when there were Covid-19 lockdowns. That was worse than economists had anticipated as record inflation hurts demand and some firms rein in production on weaker sales.