Eurozone services PMI eases to 51.2 amid weakening demand

The HCOB Eurozone Services PMI declined to 51.2 in October 2024, down from 51.4 in September and falling short of expectations for an increase to 51.5.

Eurozone services PMI eases to 51.2 amid weakening demand

This marks the slowest growth in private services activity since February, reinforcing the argument for the ECB to further lower benchmark borrowing rates. New orders fell for the second month in a row, dropping at the fastest rate since January, which forced firms to rely on existing backlogs to show a slight positive change in business activity.

Services sector employment stagnates as input costs rise, weak demand pressures confidence

As a result, employment levels in the services sector nearly stagnated. On the pricing front, input costs rose significantly but remained below the series average, prompting firms to increase output charges. Looking ahead, the ongoing weak demand continues to pressure business confidence.