Eurozone PMI slips to 51.9 in October as French unrest drags growth
The euro area’s purchasing managers' index fell to 51.9 in October, indicating slower expansion, with French service-sector weakness and higher borrowing costs cited as key factors.
According to S&P Global, the eurozone purchasing managers' index registered 51.9 for October, down from 53.1 the month before but remaining in growth territory. The chief business economist for S&P, Chris Williamson, highlighted a fresh drop in French services activity as a primary drag, attributing part of the weakness to the country’s worst street unrest in years. Growth also moderated in other eurozone economies, affecting both manufacturing and services.
The survey pointed to heightened inflationary pressures and the European Central Bank’s two interest-rate increases this year as additional headwinds that are starting to curb demand. Despite the slowdown, Williamson described the reading as among the stronger performances seen in the past three years. The mixed outlook features pessimism in France contrasted with more positive sentiment elsewhere in the bloc.
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- The two sides describe this in almost entirely different words
Why it matters
The slowdown signals that France’s unrest and higher ECB rates are beginning to weigh on the eurozone’s economic recovery.
How this story developed
- Sep 4 Rising French borrowing costs spark fears of wider Eurozone debt risk
- Oct 8 The 10‑year yield climbed to just under 5% and the spread to German bonds topped 150 basis points.
- Oct 9 Bond market sell‑off intensifies as yields spike.
- Oct 12 Rising borrowing costs hit France as a global debt storm intensifies.
- Oct 20 The France‑Germany 10‑year bond spread moved past the symbolic 1.5‑point barrier.
- Oct 21 The spread between French and German 10‑year yields widened to about 157 basis points, the highest level since 2011.
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