Euro Zone

Euro zone business growth grinds to a halt as services struggle

cde.news desk 22 November 2019, 11:27 · 1 min read

epa04383668 (FILE) A file photo dated 07 August 2014 showing a over-sized barbed wire, part of an installation, seen in front of the European Central Bank (ECB) in Frankfurt Main, Germany. The European Central Bank (ECB) announced surprise interest rates cuts on 04 September 2014 as it steps up its efforts to spur economic growth in the eurozone and to fight the threat of deflation. The Frankfurt-based ECB said it had trimmed its benchmark refinancing rate for the second time in three months, lowering to a historic low of 0.05 per cent. The bank also lowered its deposit rate, which is the rate charged for banks depositing funds at the ECB, deeper into negative territory, cutting it by 10 basis points to minus 0.2 per cent. The move sent the euro down to 1.3 dollars, while shares climbed on markets across Europe. EPA/BORIS ROESSLER

Euro zone business growth almost ground to a halt this month as activity in the bloc’s dominant services industry increased at a much weaker pace than expected and among manufacturers it contracted again, a survey showed on Friday.

IHS Markit’s flash composite Purchasing Managers’ Index, seen as a reliable guide to economic health, was 50.3, down from October’s 50.6 and moving towards the 50 mark separating growth from contraction.

Also probably of concern for policymakers, services firms likewise filled old orders faster than new ones came in and curtailed hiring, suggesting there won’t be a turnaround anytime soon.

Via Reuters

Filed under Economy Euro Zone

Topics Economy Euro Zone

Euro zone business growth grinds to a halt as services struggle

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