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Euro zone services growth slows


Euro zone services growth slows

Growth in the euro zone’s dominant service sector lost steam last month.

The Markit Services Purchasing Managers’ Index – which surveys thousands of companies ranging from hotels to banks – found weakness in France, Ireland and Italy and contraction in Spain, but an upswing in activity in Germany.

Markit said that suggests firms are receiving fewer orders and if that continues they could cut jobs.

The euro zone composite PMI, a broader measure of private sector activity that combines both the services and the manufacturing PMI slipped to an eight-month low in October.

On Tuesday the manufacturing PMI slipped.

Survey compiler Markit said the composite PMI data suggested quarterly euro zone economic growth of 0.3 percent, down from 0.6 percent in the third quarter and a peak of one percent in the second quarter.