Eurozone business activity stuck in a rut, survey shows

• Eurozone business activity stalled again this month, remaining in contractionary territory as demand from both home and abroad fell despite firms barely increasing their prices, a survey showed on Thursday.
• HCOB's preliminary composite eurozone Purchasing Managers' Index, compiled by S&P Global, nudged up to 49.7 in October from September's 49.6 but remained below the 50-mark separating growth from contraction for a second straight month.
• A Reuters poll predicted a bigger lift to 49.9. "The survey is in line with a weak economic environment with slowing inflation thanks to softening demand," said Bert Colijn at ING."The PMI was slightly up thanks to an easing contraction in manufacturing, hardly something to cheer about since the manufacturing sector has been in contraction since late 2022."
• Even the more resilient services sector was experiencing a weakening of new orders, he noted. The composite new business index barely increased from September's eight-month low of 47.7 to 47.8. The new export business reading - which includes trade among eurozone members - was also sub-50.
• Business activity in Germany, Europe's largest economy, shrank in October but less steeply than in September, according to its PMI. In France, the currency union's second-largest economy, the dominant services sector contracted at its sharpest rate in seven months, dragged down by sluggish new orders.

(Source: Reuters)