Eurozone private sector growth eases in October

23rd Oct 2026 11:39

(Sharecast News) - Growth in the eurozone private sector eased in October, according to a survey released on Friday.

The preliminary S&P Global composite PMI output index declined to 51.9 from 53.1 in October. This marked a four-month low but remained above the 50.0 mark that separates contraction from expansion.

The flash services PMI business activity index fell to a two-month low of 51.7 in October from 53.0 the month before, while the manufacturing output index eased to a four-month low of 52.4 from 53.6.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "The eurozone economy starts the fourth quarter with businesses reporting further robust growth, the flash PMI being consistent with GDP growing at a 0.3% quarterly cadence. While that's below the pace enjoyed in September it is still among some of the best performances seen over the past three years.

"A key drag on growth was a renewed drop in business activity in the French services sector. While some of the weakness in France may be linked to strikes and unrest having disrupted some local economies, growth has also edged lower in the rest of the eurozone, both in terms of manufacturing and services activity. Hiring has meanwhile come close to stalling as new order inflows cooled to show only meagre growth.

"Key to the broader slowdown is the further escalation of inflationary pressures seen during the month. Input costs are rising sharply again, the rate of increase surging in manufacturing on the back of higher energy prices, causing firms to push selling prices higher in order to protect margins. "Higher interest rates are also starting to take a toll, dampening demand, and the picture of sustained growth and stubbornly elevated inflation from the October flash PMI will likely add to further speculation of more aggressive policy tightening from the ECB."