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Exchange Rates 24.10.2018 analysis

The composite index of business activity in the industry and the service sector (PMI) of the 19 eurozone countries in October fell to the level of 52.7 points (a 25-month low). The index for the previous month was marked at the level of 54.1 points. On average, analysts predicted a decline only to 53.9 points. Despite the decline, the figure still remains above the level of 50 points, which separates the expansion from the reduction.

Experts note that the main reasons for the slowdown in business growth in the euro area countries are the intensification of the trade war between the United States and China, the controversial and ultimately rejected Italian budget, and the risks of deteriorating financial conditions for enterprises.

Performed by T Strelkova,
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