The final data published by HCOB showed that activity in the eurozone private sector grew moderately in September, retreating from the lowest level since November 2022, but remained in contraction territory.
The Eurozone Composite PMI Output Index, which assesses the change in activity in the manufacturing sector and the service sector, rose in September to 47.2 points from 46.7 points in August. Economists had expected a rise to 47.1 points. The index remains below the 50-point mark, which indicates a reduction in activity in the sector, for the fourth month in a row. Meanwhile, the services PMI rose to 48.7 points from 47.9 points in August. Consensus estimates suggested a rise to 48.4 points.
The data also showed that new orders fell at the fastest pace in nearly three years, reflecting an accelerated fall in new business received by service providers. Outstanding business volumes fell at a strong and accelerated pace during September, reflecting the faster processing of orders across both monitored sectors. The extent to which work-in-hand fell was the fastest since June 2020. Amid growing concerns about demand, business confidence for the next 12 months weakened markedly in September - the overall level of optimism fell to a 9-month low. Employment continued to rise in September, but the increase was only slight and much weaker than the average in the first half of 2023. Meanwhile, data signaled a further uptick in cost pressures, with the overall rate of input price inflation quickening for a second successive month to a four-month high. Prices charged were subsequently raised, albeit to the smallest extent since February 2021.