Euro Area Private Sector Contracts, German Orders Plunge 3.3%

Arthi Gupta
06 Nov, 2012
New York City

Euro zone private sector contracted more than initially estimated and service sector activity and new orders in the Spain continued to shrink in October. German factory orders fell in September.

[R]1:30 PM Frankfurt – Euro zone private sector contracted more than initially estimated and service sector activity and new orders in the Spain continued to shrink in October. German factory orders fell in September.[/R]

Euro Zone Private Sector Drops

Euro zone''s private sector contracted more than initially estimated in October, final data from a survey by Markit Economics showed.

The composite output index fell to 45.7 in October, down from 46.1 in September and the earlier flash estimate of 45.8.

The euro zone services business activity index decreased to 46 in October, lower than 46.2 initially estimated. In September, the reading was 46.1.

Separately, euro zone annual producer price inflation remained unchanged at 2.7% in September, data released by Eurostat showed today.

On a monthly basis, the producer price index rose 0.2% from the 0.9% growth in September.

German Factory Orders Decline

Germany''s factory orders fell 3.3% from a month ago in September, following a 0.8% drop in August, the Federal Ministry of Economics and Technology reported today.

Separately, German service sector output fell slightly in October, according to survey results by Markit Economics.

The composite output index, that measures performance of both manufacturing and service sectors, fell to 47.7 in October from 49.2 in September.

The business activity index fell to 48.4 in October from 49.7 in September.

French, Italian and Spanish Service Sector Data

Business activity in the French service sector decreased at a substantial rate in October, final survey data from Markit Economics showed.

The final services Purchasing Managers'' Index fell to a 12-month low of 44.6 in October from 45 in September.

The composite output index rose to a two-month high of 43.5 in October from 43.2 in September.

Separately, trends in business activity, new work and employment in Italy’s service sector improved during October, data released by Markit Economics showed.

The seasonally adjusted purchasing managers'' index for the service sector rose to a 14-month high of 46 in October from 44.5 in September.

In another report, the Spanish service sector in October continued to shrink but at a slower pace as the economic crisis in the country persisted, data from a survey by Markit Economics showed.

The seasonally adjusted purchasing managers'' index for the service sector rose to 41.2 in October, following the reading of 40.2 in September.

Swiss Confidence Flat

The Swiss consumer confidence index remained unchanged at -17 points in the three months to October from the preceding three-month period ended July, data from a survey by the State Secretariat for Economic Affairs showed today.