A decline in business activity across the eurozone deepened in September, dashing hopes the region can avoid a recession this winter, APA-Economics reports citing Bloomberg.
S&P Global’s PMI gauge dropped to 48.1 last month, down from 48.9 in August. It was the third successive month of contraction and the fastest decline in output since January 2021.
Output in both the manufacturing and services sectors fell at a faster pace as high inflation, soaring energy costs and rising economic uncertainty took their toll.
Total new orders fell to the greatest extent in almost two years, while there was a sharp drop in export sales.
Christ Williamson, chief business economist at S&P Global, said: “Any hopes of the eurozone avoiding recession are further dashed by the steepening drop in business activity.
“Not only is the survey pointing to a worsening economic downturn, but the inflation picture has also deteriorated, meaning policymakers face an increasing risk of a hard landing as they seek to rein in accelerating inflation.”
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