Euro zone private sector growth slowed to its weakest pace in four months in October, with the S&P Global flash composite PMI output index falling to 51.9 from 53.1 in September, below every forecast in a Reuters poll that had expected 52.7. Services activity fell to a two-month low of 51.7 and manufacturing eased to 52.4, while France pointed to contraction again and French business confidence hit its lowest since 2012 outside the pandemic. Input costs accelerated for a second month on higher energy, fuel and transport costs linked in part to the Middle East war, and hiring came close to a standstill, leaving sustained growth alongside stubborn inflation ahead of next week’s European Central Bank decision.
Euro zone flash PMI falls to four-month low
The S&P Global flash euro zone composite PMI fell to 51.9 in October from 53.1 in September, its lowest since June and below the 52.7 forecast in a Reuters poll, as France contracted again and energy-driven input costs rose sharply.
Why it matters: Growth is still positive but slowing while inflation pressures build again, a combination that leaves the European Central Bank, expected to hold its deposit rate at 2.50 percent next week, facing speculation of a further rise in December.
Data as of S&P Global flash PMI for October 2026, reported in full by Reuters on October 23, 2026 and read via its syndicated text; services 51.7 against 52.5 forecast, manufacturing 52.4 against 52.7 forecast. Developing item.
Sources
- S&P Global Flash Eurozone PMI - S&P Global - 2026-10-23
- Euro zone growth slows to 4-month low amid rising costs and French turmoil, PMI shows - Reuters, via Devdiscourse - 2026-10-23