2024-09-23 14:19:29
Eurozone private sector activity unexpectedly contracted in September for the first time in seven months, pressured by the effects of the end of the Olympics in France. This is indicated by the Supply Managers’ Index (PMI) of S&P Global, reported Reuters and AFP.
The index, based on surveys of companies, fell to 48.9 points after 51 points in August. A value below 50 points indicates a decline in activity, BTA reports.
In September, activity decreased in the two largest economies in the Eurozone – France and Germany.
For the 20 countries of the currency union, the decline in the index is the sharpest in 15 months, says Cyrus de la Rubia, an economist at the Hamburg Commercial Bank (HCOB), a partner of S&P Global.
According to the expert, this trend reflects “the end of the growth observed in France in August 2024 thanks to the Olympic Games in Paris. The weakening of the economic situation in the second largest economy in the region led to a decline in the index (for the Eurozone)”, he notes.
In addition, according to him, the situation is not expected to improve in the short term.
“The sharp declines observed during the month in the total volume of new business and in the volume of current activity portend a further economic slowdown in the coming months,” predicted De la Rubia.