Index signals eurozone recession

The eurozone is likely entering a recession, with the fall in manufacturing orders the sharpest since 2009. The benchmark Purchasing Managers’ Index* has fallen for six straight months


*Eurozone PMI: Combines five economic variables into one index. 
Value below 50 indicates economic contraction
 
Oct 2021: Inflation at 4.1% – more than double European Central Bank’s target of 2%

Apr-Jun 2022: Energy costs rise 181% year on year

Jul: Cost of living crisis leads to slump in orders for goods and services

Oct: Eurozone composite PMI falls to lowest level since 2013. Inflation hits 9.9%
(Germany reports steepest fall with PMI sinking to 44.1)
 
55
50
45

54.2 55.8 53.6 53.4 55.5 54.5 55.8 54.9 52.0 49.4 48.9 47.5 47.1
Oct  Nov  Dec  Jan  Feb  Mar  Apr  May	Jun  Jul  Aug  Sep  Oct					2021				2022

               
Sources: European Commission, Reuters, S&P Global 
Pictures: Getty Images 
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