Economic Gloom in the Eurozone Spreads

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By Trey Thoelcke Published
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In October, Markit’s Composite Purchasing Managers’ Index (PMI) fell to 45.8 from a September reading of 46.1. That is, businesses in the eurozone saw their worst month since the 17-nation bloc emerged from recession more than three years ago.

The index, which surveys around 5,000 businesses across the eurozone and is viewed as a reliable growth indicator, now has been below the 50 mark that separates growth from contraction since February.

The PMI for the services sector ticked up from last month’s 46.1 to 46.2, but that missed expectations for a larger rise to 46.4. The manufacturing PMI slipped to 45.3 from 46.1, rather than the predicted a climb to 46.5.

The business expectations index fell sharply to 47.8, its lowest reading since February 2009. And the output index for the sector sank to 44.8 from last month’s 45.9.

In addition, the composite employment index rose to 47.1 from last month’s 46.4, as businesses cut their workforces for the 10th straight month.

“There is nothing specific that is making businesses gloomier — it is a much more general widespread gloom,” said Chris Williamson, chief economist at Markit. “Businesses are very much in cost-cutting, retrenchment mode, battening down the hatches because they don’t know what the outlook is.”

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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