FX.co ★ Eurozone Business Activity Growth Slows

The S&P Global Eurozone Composite PMI slipped to 51.9 in October 2026, down from 53.1 in September—a three‑and‑a‑half‑year high—and below market expectations of 52.7, according to the preliminary estimate. Business activity continued to expand for a fourth straight month, but the pace of growth slowed to the weakest in this recent upturn, in part due to a renewed contraction in French services. Strikes and social unrest likely disrupted local activity in France, but momentum also cooled across the rest of the eurozone, weighing on both manufacturing and services.

At the same time, growth in new orders softened, pushing employment growth close to stagnation. Rising energy prices drove input costs higher, prompting firms to pass on part of these increases through higher selling prices. Elevated interest rates further dampened demand, intensifying worries about slowing growth and stubborn inflation and potentially reinforcing expectations of additional ECB tightening. Business confidence deteriorated as well, slipping to a five‑month low.