The Eurozone’s output deteriorated to a new record low in October. According to global financial information services company Markit, the Composite Output PMI, which is a weighted average of the Manufacturing Output Index and the Services Business Activity Index, reached 47.2, down from the September figure of 49.1. This is the lowest figure since July 2009.
Despite a modest drop in production, German GDP expanded slightly, while France was hit harder, witnessing a contraction in output for both services and manufacturing.
Markit claimed this phenomenon reflected a weaker demand for goods and services, with new orders falling for the third consecutive month, showing the largest decline since June 2009, further reporting a drop in new orders for the manufacturing industry for the fifth straight month, with the rate of decline gathering momentum to become the fastest since May 2009.
The employment market also suffered a downturn, with both Germany and France registering very modest job creation in October. Eurozone employment growth slowed to near stagnation, showing the poorest improvement since the beginning of the economic recovery in May 2010.