The Report on Eurozone produced by NTC Research in association with Reuters brought more bad news for the continent’s economy.
Following the all-time low in the Reuters Eurozone Purchasing Managers Index published a few days ago [WAMN: 05-Nov-01], the survey found that private sector economic output declined for the second month in succession in October, and at the fastest rate since the research began forty months ago.
The Reuters Eurozone Composite Output Index, measuring the whole private sector economy (both services and manufacturing), came in at 45.2 (50 = no change). New business also contracted, with a series low of 42.8 in the index of incoming business. Meanwhile, the Reuters Eurozone Employment Index posted 47.6, the first decline in the total private sector workforce since the survey began.
Turning to the service sector in particular, the Reuters Eurozone Services Business Activity Index fell from 49.0 to 46.7 last month, continuing a downward trend evident since the Spring. All countries in the survey registered a fall, with particularly sharp contractions in Ireland and Germany. On top of general weakness in the global economy, the events of September 11 were frequently cited as hitting business activity.
News source: NTC Research