Eurozone Services Sector Shows Modest Growth Amid Challenges
The eurozone services sector experienced modest growth in September, with the PMI rising to 51.3. However, hiring stalled and foreign demand remained weak. Despite limited growth, optimism about future activity increased, and price pressures eased. Germany, Italy, and Spain saw growth, while France faced political uncertainties.
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The eurozone's services sector showed limited growth in September, reaching an eight-month high while revealing underlying challenges. The HCOB Eurozone Services PMI increased to 51.3, signaling the fourth consecutive month of expansion, albeit with stalled hiring and subdued foreign demand.
Chief Economist Cyrus de la Rubia from Hamburg Commercial Bank indicated a smoother operation in the sector compared to August. Germany, Italy, and Spain experienced moderate growth, though France struggled under political uncertainties, impacting service providers.
Although new export orders declined for the 28th month, service providers expressed increased optimism, with business confidence hitting an 11-month high. Workforce reduction and eased price pressures were notable, with the broader Composite PMI rising to 51.2. The eurozone economy is estimated to have grown 0.4% last quarter, against a more conservative 0.1% in a Reuters poll.
(With inputs from agencies.)
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