Investing.com - Private sector output in the euro zone grew at the slowest pace this year in September, according to data released on Tuesday, adding to fears that the region’s recovery is losing momentum.
Research group Markit reported that the preliminary euro zone manufacturing purchasing managers’ index ticked down to a 14 month low of 50.5 from 50.7 in August, broadly in line with expectations.
The currency bloc’s services PMI slid to a three month low of 52.8 from 53.1 in August, compared to expectations for a reading of 53.0.
The euro zone composite output index, which measures the combined output of both the manufacturing and service sectors slumped to a nine month low of 52.3 from 52.5 in August.
“The survey paints a picture of ongoing malaise in the euro zone economy”. Chris Williamson, chief economist at Markit said.
"The survey data suggest GDP is on course to grow by 0.3% at best in the third quarter, buoyed by a 0.4% expansion in Germany but dragged down by stagnation in France and sluggish growth in the rest of the region. There are also worrying signs that growth could slow further in the fourth quarter”.
Following the release of the data, the euro was slightly higher against the dollar, with EUR/USD at 1.2857 compared to 1.2855 ahead of the report.
Meanwhile, European stock markets were sharply lower. The DJ Euro Stoxx 50 was down 0.95%, France’s CAC 40 dropped 1.32%, London’s FTSE 100 slumped 1.10%, while Germany's DAX was down 0.82%.