BRUSSELS (AFP) – Euro zone business activity fell for the first time in seven months in September as France’s economic slowdown after the Paris Olympics ended, a major survey released yesterday showed.
The S&P Global Purchasing Managers’ Index (PMI), a key gauge of the overall health of the economy, fell to 48.9 in September from 51 in August.
A reading below 50 indicates shrinkage.
“The euro zone is heading for stagnation. After the Olympics gave a temporary boost to the euro zone’s main economy, France, the composite PMI fell by the most in 15 months in September,” said Cyrus de la Rubia, chief economist at Hamburg Merchant Bank. “Given the sharp declines in new orders and backlogs, it is easy to imagine the economy weakening further.”
The study showed that big powers France and Germany were largely to blame for the downturn in the 20 economies. Manufacturing weakened across the board.
A man walks past a giant euro logo at the visitor centre of the European Central Bank headquarters in Frankfurt am Main. Photo: AFP
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