The economic growth ofEurozone Slows. In fact, in September, the composite PMI index elaborated by Markit stood at 53,6, at least for four months e down from 54,3 in August and compared to analysts' estimates, which had expected a more contained drop to 53,9. Growth is there but slows its pace; in any case, the datum remains well above the 50 point level, the watershed between expansion and contraction of activity.
The index services September's Eurozone index hit 53,7, its lowest in seven months and below the previous flash estimate of 54 and August's reading of 54,4.
Compared to the previously released flash reading, the final reading of the PMI indicated a slightly lower value which, in any case, maintains a slight expansion of the currency union economy. However, the European economy, as noted by Markit chief economist Chris Williamson, failed "to pick up speed during the summer, especially as regards employment growth".
“The weakening of the expansion rate in September – continues Williamson – increases the risk that growth will lose even more vigor in the fourth quarter, increasing the probability that the ECB will further open the taps of quantitative easing”.
Even in Italy the composite PMI index showed a slowdown, settling at 53,4 from 55 in August. Expectations were for a reading at 54,1. Both sub-indexes slow down: the sector of servizi to 53,3 from 54,6 in August and the manufacturing one to 52,7 from 53,8. In any case, the business remains expanding for the ninth month in a row.
Above all, the weak increase in new orders weighed on companies in the service sector, while companies in the sector reacted by reducing their workforce for the second time in the last three months. However, the optimism of companies is growing.
Similar trend also in Germany, where the composite index fell from 55 in August to 54,1. The PMI services it stood at 54,1 from 54,9 in August, below expectations.
