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Euro Zone’s Factory Downturn Intensifies on Record Inflation

  • Final manufacturing PMI falls to 46.4 in October from 48.4
  • Manufacturing sector clearly in recession, S&P Global says
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Euro-area manufacturing activity sank to the lowest level since the first Covid-19 lockdowns in 2020 as record inflation and a weakening global economy erode demand for goods.

All of the currency bloc’s biggest economies except Ireland saw the downturn deepen in October, according to surveys of purchasing managers by S&P Global published Wednesday. Spain was the worst hit, followed closely by Germany, which is among the most exposed to Russia’s cut in energy supplies.