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Drop in EMU Composite PMI points to slowdown in recovery - BNP Paribas

FXStreet (Łódź) - Clemente de Lucia from BNP Paribas comments on the Eurozone Composite PMI numbers released today and showing a drop to 52.3 in September, the lowest reading since December last year.

Key quotes

"Although the survey still signals that output probably increased in Q3(the average is 52.9), the dynamics of activity suggested by the survey is a case of concern, hinting that the zone is far from being in healthy shape."

"The September’s reading is the lowest since December2013, and the Q3 average the lowest for the year."

"Activity growth decelerated in the services sector while it was stable in the manufacturing."

"Against a general backdrop of slowing activity growth, firms are not increasing their demand for labour, and are still offering discounts to stimulate demand."

"To sum up, today’s figures are not very encouraging. Activity growth has probably remained lackluster in Q3."

"Going forwards, a more accommodative monetary policy stance and a weaker euro might bring some relief to activity."

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