"The PMI suggests the eurozone economy remained stuck in a rut in the third quarter. After GDP stagnated in the second quarter, we can only expect modest growth of 0.2-0.3% in the third quarter based on these survey readings, with momentum being lost as we head into the final quarter of the year"
- Chris Williamson, Markit chief economist
Activity in the Euro zone's services sector continues to decline in September on pessimistic sentiment among the region's member states, recording a decline for the third consecutive month. The PMI index for the services sector slid to 52.4 in September compared to 53.1 in the preceding month, according to Markit Economics. Analysts, however, had forecasted 52.8.
Elsewhere, business activity in France's services sector contracted again in September following two month of growth. PMI index for services dipped to the red territory hitting 48.4, down from 50.3 in August. Markit's overall PMI index, which includes services and manufacturing sectors, dropped to 48.4 from 49.5 in August, worse than the 49.1 originally reported. Meanwhile, business activity in France's manufacturing sector slightly improved in September but remained in contraction for the fifth consecutive month. In Germany services activity increased for the 16th month in a row, suggesting Europe's largest economy will grow again in the third quarter after shrinking in the second. The PMI for Germany's services sector rose to 55.7 points last month after the 54.9 recorded for August, Markit Economics said. However, the performance of Germany's manufacturing activity deteriorated to 49.9 in September, falling into contraction territory for the first time in 15 months, Markit reported.
© Dukascopy Bank SA