Eurozone services PMI edges up, export orders fall

The HCOB Eurozone Services PMI rose slightly to 51.6 in October 2024, up from 51.4 in September, revised higher from an initial estimate of 51.2, and slightly ahead of the expected 51.5.

Eurozone services PMI edges up, export orders fall

This indicates moderate growth in the services sector. However, new contracts for service providers fell for the second consecutive month, particularly in foreign markets, as export orders saw their sharpest decline in ten months. The drop in new business was offset somewhat by the depletion of outstanding work, which helped prevent a steeper output-level downturn. Employment continued to rise, although job creation slowed to its lowest rate since February 2021, reflecting the more cautious hiring trends amid softer demand.

Inflation pressures rise, but business confidence remains strong for year ahead

On the price front, inflation pressures increased for both input costs and output charges, though not at alarming levels. Despite these challenges, business confidence remained strong, with firms expressing optimism about the activity outlook for the next 12 months, suggesting that many expect conditions to improve as the year progresses.