Overview

• German business sentiment improved in October, with the Ifo business climate index rising to 86.9, higher than expected, following five months of decline. Despite this, economists still fear a recession with a continued low level of Ifo business climate index.
• US business activity rose in October, with improved outcomes in both the manufacturing and service sectors; this growth defies predictions of a recession following interest rate hikes by the Federal Reserve and in the context of inflation.
• Eurozone business activity took a turn for the worse in October as demands fell, triggering concerns that the bloc may go into recession. Economists had anticipated some recovery in September, but these PMI reports have put these predictions in doubt.
• UK businesses are continuing to decline with reports indicating another decrease in activities in October. The PMI survey suggests a risk of recession as the Bank of England prepares for its interest rate decision next week.
• The French services sector contracted again in October, PMI data showed. It was the second-steepest decline in nearly three years, indicating more stress on the economy.
• Japan's factory activity has continued to shrink in October, marking the fifth consecutive month of contraction, while the service sector also saw its weakest growth this year, raising uncertainty over the economic outlook for the country.