- September Eurozone PMIs further challenged the optimism in hard data mounting the uncertainty underlying the economy. As a matter of fact, the newly released data confirmed the softening momentum of the Eurozone manufacturing and service sectors.
- Risks remain tilted to the downside, raising concerns on whether the resilience in the service sector will last and whether a spillover into services could materialize soon.
- German data weakened remarkably, with the manufacturing index falling from 43.5 to 41.7 heading towards 2008 financial crisis levels.
- Similar dynamics characterized the whole Eurozone, whose figures were dragged down by the strong decline in Germany and by the softening data in all other main Eurozone countries. Accordingly, PMI data also fell sharply in Italy, Spain and France, to, respectively, 47.8 (from 48.7), 47.7 (from 48.8) and 50.1 (from 51.1).
- Weakening signals arose also from the Eurozone service sector as Germany and France indices fell sharply to, respectively, 51.4 (from 54.8) and to 51.1 (from 53.4). Slightly more optimistic data came from Italy and Spain, with the former showing a slight improvement from 50.6 to 51.4 and the latter trending firmly above the worrying threshold, despite the decline from 54.3 to 53.3.