Eurozone Commercial Activity Remains in Contraction Territory in October

In the Eurozone, a contraction in business activities continued in October. The HCOB's preliminary Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, remained in the contraction zone due to declining demand both domestically and internationally. The Eurozone Composite Purchasing Managers' Index rose to 49.7 in October from 49.6 in September, while economists had expected a larger increase to 49.8. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, stated, "The Eurozone seems to be stuck in a bit of a routine, with the economy marginally contracting for the second consecutive month. The ongoing decline in manufacturing is largely offset by small gains in the services sector." The composite new orders index increased slightly to 47.8 from 47.7, the lowest level in eight months in September. Growth in the services sector declined again in October, with the services PMI falling to 51.2 from 51.4, contrary to expectations of an increase to 51.5. The service output prices index was slightly above the 41-month low in September at 52.6. Although the decline in manufacturing activities, ongoing for more than two years, was not as severe as in September, it continued into October. The manufacturing PMI index rose to 45.9 from 45.0, while analysts had anticipated a more modest increase to 45.3. The index measuring output jumped to 45.5 from 44.9. The future output index fell to the lowest level in 12 months, dropping to 52.3 from 53.6.