Eurozone business activity going from ‘bad to worse’

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Job cuts are at the fastest rate since Covid while services sector hiring has ground to a halt.

Europe’s PMI score has now dropped for five successive months, declining at the fastest pace since November 2020.

“We wouldn’t be caught off guard to see a mild recession in the eurozone in the second half of this year,” he said. The PMI score has now dropped for five successive months, and was declining at the fastest pace since November 2020. Jobs in the manufacturing sector were being shed at the fastest rate since August 2020, and hiring in the services sector was close to a standstill.The year-ahead outlook of purchasing managers questioned “remained among the weakest seen over the past year,” even if it there was a “marginal” uptick for October.

The ECB has been tightening the monetary screws a turn at every one of its last 10 meetings, and the bank’s key deposit rate now sits at an unprecedented 4%.

 

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