Weak Euro-Area PMI Data Suggest Economy Facing Contraction
- Composite PMI at 47.1 in September, below 50 for fourth month
- German and French economies key drivers of region’s downturn
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Private-sector activity in the euro area has continued to shrink in September, suggesting the economy contracted in the current quarter.
An index based on surveys of purchasing managers by S&P Global showed a fourth consecutive month of falling output, hitting 47.1. While that’s a slight improvement on August, the reading is clearly below the 50 level that indicates contraction. Economists had predicted a drop to 46.5.