LONDON (Reuters) – Private sector activity in the euro zone deteriorated more than expected in October with the slowdown in demand, shows the S&P Global business survey published on Tuesday.

The composite “flash” HCOB PMI index, bringing together the manufacturing sector and services, fell to 46.5 in October, its lowest level since November 2022, after 47.2 in September and a consensus of 47.4.

If we exclude the period of the COVID 19 pandemic, the index is at its lowest since March 2013.

The bar of 50 separates growth from contraction in activity.

“In the euro zone, things are going from bad to worse,” said Cyrus de la Rubia, economist at Hamburg Commercial Bank.

“We would not be surprised to see a slight recession in the eurozone in the second half of this year.”

The “flash” PMI for services fell to a 32-month low, to 47.8 in October from 48.7 in September. Analysts expected an unchanged PMI.

Demand for services continued to fall: the component for new business fell to 45.5 from 46.4 in September, the lowest since the start of 2021.

The “flash” PMI index for the manufacturing sector came out at 43.0 against 43.4 in September and a consensus of 43.7. It thus remains below the threshold of 50 for the sixteenth consecutive month and at its lowest since May 2020.

(Written by Jonathan Cable, Blandine Hénault for the , edited by Kate Entringer)

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