Rising Recession Risks As Eurozone Flash PMI Falls In October, Price Pressures Ease Further

Summary

• With the exception of a brief period of growth during the opening quarter of 2023, euro area manufacturing output has decreased continuously since the middle of 2022.
• The downturn in new orders and the accelerated depletion of backlogs of orders prompted firms to reduce employment for the first time since January 2021.
• A fifth consecutive month of job losses in the factory sector saw manufacturing headcounts drop at the sharpest rate since August 2020, while hiring came close to stalling in the service sector.

Heidloss Tilo Geringswald Felix GbR

The eurozone economic downturn accelerated at the start of the fourth quarter, according to provisional PMI survey data for October, with private sector output declining at the steepest rate for over a decade if pandemic-affected months