European PMIs Drop Despite French Surprise

There are signs dwindling demand from Asia, led by China, is starting to hurt businesses in the euro zone, according to PMI survey compiler Markit.

Private business growth in the currency bloc slowed this month as Asian demand weakened, leading to fewer new jobs and forcing factories to reduce output.

The Markit Composite Flash PMI for the bloc came in at 53.9 in September against predictions of 54.1, down from 54.3 last month. Markit said the PMIs point to third-quarter growth of 0.4 percent.

“It is hard to see euro zone growth really kicking on,” said Howard Archer at IHS Global Insight.

“There is the very real risk that slowing growth in emerging markets like China not only hits euro zone exports but also has a negative impact on business sentiment and leads to a scaling back of investment and employment plans.”

Business activity in Germany, the euro zone’s biggest economy, slowed slightly in September while activity rebounded in France as manufacturing output swung back to growth after two consecutive months of decline.

via Reuters

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