The euro area private sector recorded the weakest growth in six months

Activity in the euro area private sector continued to grow in October, but the growth rate was the weakest in the last six months. This was stated on Friday by the company IHS Markit, which published a quick estimate. The reason is the rising costs of companies due to persistent problems in supply chains, in addition, the dominant service sector is again being pushed by the deteriorating pandemic situation. The composite IHS Markit Purchasing Managers' Index, which includes both the manufacturing and services sectors, reached 54.3 points in the euro area in October, compared with 56.2 points in September. This still means an increase in activity in the sector, as growth is separated from the decline by the limit of 50 points, but the October value is the lowest since April. The figure also lagged behind the estimates of analysts contacted by Reuters. They expected a slight slowdown in activity in the private sector, estimating the index at 55.2 points. The services sector in particular experienced a more significant slowdown. The relevant index of purchasing managers reached 54.7 points in October, while in September it was 56.4 points. It is the lowest value of the index since April, while analysts expected its decline to only 55.5 points. The purchasing managers' index for the manufacturing sector also declined, albeit only minimally, and activity in this sector remains high. The index reached 58.5 points in October, compared to 58.6 points in September. The minus is the partial index of production. It fell in October from 55.6 to 53.2 points, which is the lowest level since June 2020.