LONDON (Reuters) – The euro zone economy likely contracted in the third quarter, according to a survey showing demand fell in September at the fastest pace in almost three years as consumers put the brakes on their expenses in the face of rising borrowing costs and rising prices.
The composite PMI index, which combines services and manufacturing activity, stood at 47.2 in September, compared to 46.7 for August, the results of the monthly Hamburg Commercial Bank (HCOB) survey carried out by S&P Global showed on Wednesday.
A first estimate gave it at 47.1, while the 50 mark separates expansion and contraction of activity.
The new survey shows that the slowdown was widespread since, as in August, production fell in both services and manufacturing.
The composite new orders index for September, which tracks overall demand, fell from 44.6 in August to 44.4 last month, the lowest since November 2020, when the world was dealing with the coronavirus pandemic. COVID-19.
The PMI index for the services sector alone remained below the 50 mark for the second month in a row, although it increased from 47.9 in August to 48.7 in September. The “flash” estimate put it at 48.4.
Another positive point is that companies in the service sector increased their workforce at a faster rate in September than in August. The employment index thus rose from 50.4 to 51.5.
(Reporting Jonathan Cable; Claude Chendjou, editing by Kate Entringer)
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