Eurozone private sector stagnates as confidence and employment decline

The HCOB Eurozone Composite PMI was revised to 50 in October 2024, slightly above the initial estimate of 49.7 and September’s 49.6, indicating stagnation in Eurozone private sector activity.

Eurozone private sector stagnates as confidence and employment decline

This flat reading reflects a still-challenging environment, with manufacturing contracting slower (46 compared to 45 in September) and services activity gaining modest traction (51.6 compared to 51.4). Notably, business activity declines in Germany and France offset expansion in Spain, Ireland, and Italy, underscoring the uneven recovery across the region. Demand conditions continued to soften, leading to a sharper drop in employment—the steepest since December 2020—as firms remained cautious in hiring.

Eurozone inflation pressures ease as business confidence hits yearly low

Meanwhile, inflationary pressures for input and output costs remained subdued, with rates among the lowest in over three-and-a-half years, reflecting a more competitive pricing environment. Business sentiment slipped for the fifth straight month, hitting a new low for the year as firms faced continued uncertainty around economic recovery, indicating a cautious outlook in the months ahead.