Euro Zone Economy Faces Recession Fears as Business Activity Downturn Accelerates; German Services, Japan's Activity Growth Slow Down

Euro Zone's PMI falls to its lowest since 2020; Germany's service sector reenters contraction due to weak demand, and Japan's service sector registers slowest expansion this year.

• The Euro Zone's composite Purchasing Managers' Index, considered an indicator of overall economic health, fell to 46.5 in October from September's 47.2, marking its lowest reading since November 2020 when COVID-19 restrictions were first implemented.
• Germany's service sector slipped into contraction in October, with the Purchasing Managers' Index dropping to 48.2 from 50.3 the previous month, due to a persistent weakness in demand.
• Japan's service activities slowed down in October, with the final au Jibun Bank Service Purchasing Managers' Index decreasing to 51.6 from 53.8, which was the slowest expansion this year, triggered by weak demand.
• Economic experts point out that the Euro Zone GDP may likely drop in the fourth quarter with France reported as the worse-performing major economy, followed closely by Germany and Italy.
• Despite the gloomy outlook, there were slight positive trends with easing inflation pressures reported in both the Euro Zone and Japan.

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