Eurozone’s business activity declines for first time in 7 months in September
Date
9/24/2024 4:55:01 AM
(MENAFN) Business activity in the Eurozone experienced a renewed downturn in September, according to a report released by data provider S&P Global on Monday. This decline marked the first drop in output in seven months and coincided with a consistent decrease in new orders. The report highlighted that the drop in new business was the most significant since January, indicating a troubling trend for the region's economic health.
The decline in new orders, coupled with a reduction in outstanding business volumes, contributed to a lack of business confidence, which has reached its lowest level in ten months. As a result, companies began to reduce their workforce numbers for the second consecutive month. This workforce scaling back reflects the growing concerns among businesses about future demand and economic stability.
In addition to workforce reductions, the ongoing weakness in demand has led to a more manageable inflationary environment. The report noted that both input costs and output prices are experiencing easing pressures, suggesting that companies are facing less strain in terms of rising expenses. This could provide some relief for businesses, even as they navigate the challenges of declining orders.
The Eurozone Composite Purchasing Managers Index (PMI), a key indicator of economic performance, registered a score of 48.9 in September, down from 51 in August. A PMI reading below 50 typically signifies a contraction in business activity, reinforcing the concerns outlined in the report about the current economic climate in the Eurozone.
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