The eurozone's economy looks set to weaken further, with activity contracting for a second-straight month, as policymakers at the European Central Bank consider whether to accelerate interest-rate cuts to spur economic activity.
Private-sector activity in the 20 countries that use the euro currency retreated in October compared with a month earlier, albeit not as sharply as in September, according to S&P Global's Composite Purchasing Managers' Index published Thursday.
The index rose to 49.7 this month, marginally higher than the 49.6 of September, but still below the 50-point mark that separates expansion and contraction.
Manufacturing remains in a sustained downturn, although the rate of contraction softened this month, S&P said, but services, which has tended to do better, remained in positive territory.
The ECB last week cut its key interest rate for the second meeting in succession, as already weaker-than-expected growth prospects prompted policymakers into action.
Write to Ed Frankl at [email protected]
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