The German economy, Europe's largest economic engine, is on the decline. A preliminary composite index – where purchasing managers in leading positions were asked about the situation – does indeed rise to 48.4. It was a higher outcome than the expected 47.6.
But an index value below 50 indicates decreased activity.
It is particularly the German manufacturing industry that is slowing down. For that sector, the index rises to 42.6 – a slightly better outcome than analysts had expected. The average forecast was 40.8, according to Bloomberg.
The October index for the German service sector simultaneously rises to 51.4, compared to the expected 50.6.
The French economy is simultaneously slowing down more than expected. This applies to both the manufacturing industry and the service sector.
A preliminary composite index for October from France falls to 47.3, from 48.6 in September. Analysts had on average expected an increase to 48.9.
For the manufacturing industry, the French purchasing managers' index falls to 44.5, while the index for the service sector drops to 48.3. The average forecast was 45.0 for industry and 49.9 for the service sector.
For the entire eurozone, the preliminary composite index for October rises to 49.7 – in line with expectations. The October index for the manufacturing industry in the eurozone rises to 45.9, compared to the expected 45.1, while the service sector's October index falls to 51.2, compared to the expected 51.5.
In the morning, corresponding indexes are also expected from the UK, and in the afternoon, an index for October from the USA will also be released.
A Swedish purchasing managers' index for the manufacturing industry will be published by Swedbank and Silf on November 1.
