BRUSSELS (AFP) – Eurozone business activity declined for the first time in seven months in September, as France lost steam after the end of the Paris Olympic Games, a key survey said yesterday.
S&P Global’s purchasing managers’ index (PMI) – a key gauge of the overall health of the economy – dropped to 48.9 in September, down from 51 in August.
Any reading below 50 indicated contraction.
“The eurozone is heading towards stagnation. After the Olympic effect had temporarily boosted France, the eurozone heavyweight economy, the Composite PMI fell in September to the largest extent in 15 month,” said chief economist at Hamburg Commercial Bank Cyrus de la Rubia. “Considering the rapid decline in new orders and the order backlog, it doesn’t take much imagination to foresee a further weakening of the economy.”
The survey showed powerhouses France and Germany were largely responsible for driving the slump in the 20-country economy. The manufacturing sector was down across the board.
