Eurozone PMI Manufacturing dropped slightly to 58.5 in October, down from September’s 58.6, above expectation of 57.3. But that’s still the lowest level in 8 months. PMI Services dropped to 54.7, down from 56.4, below expectation of 55.4, and a 6-month low. PMI Composite dropped to 54.3, down from 56.2, a 6-month low.

Chris Williamson, Chief Business Economist at IHS Markit said: “A sharp slowdown in October means the eurozone starts the fourth quarter with the weakest growth momentum since April… The ongoing pandemic means supply chain delays remain a major concern, constraining production and driving prices ever higher, both in manufacturing and in the services sector. Average selling prices for goods and services are rising at a rate unprecedented in over two decades, which will inevitably feed through to higher consumer prices in the coming months.

“While the overall rate of economic growth remains above the long-run average for now, risks seem tilted to the downside for the near-term as the pandemic continues to disrupt economies and push prices higher. After strong second and third quarter expansions, GDP growth is looking much weaker by comparison in the fourth quarter.”