Eurozone business activity slows as energy costs rise

Private-sector business activity across the eurozone slowed in October as rising energy costs and a fresh contraction in France weighed on growth amid political and economic pressures, according to a survey published on Friday. The preliminary S&P Global composite purchasing managers’ index (PMI) for the eurozone fell to 51.9 points in October, down from 53.1 in September, marking its lowest level since June. The reading was also weaker than expected, with analysts polled by Reuters forecasting a more modest decline to 52.7 points. The PMI uses the 50-point mark to distinguish between expansion and contraction, meaning that the latest reading still indicates growth across the eurozone’s private sector, although at a slower pace. The services PMI also declined, falling to a two-month low of 51.7 points in October from 53.0 in September. Analysts polled by Reuters had expected the services index to ease to 52.5 points, making the latest reading weaker than forecast. The figures point to a loss of momentum in eurozone business activity as higher energy costs and renewed weakness in France weigh on the region’s economic performance.