Euro-Zone Business Activity Slows More Than Expected as France Weighs

Euro-area private sector activity slowed more than expected in October, with France weighing on the region as its No.2 economy deals with fiscal and political tensions.

The Composite Purchasing Managers’ Index compiled by S&P Global fell to 51.9 from 53.1 in September. The reading stayed above the 50 mark that separates growth from contraction. Analysts in a Bloomberg survey had expected a smaller decline to 52.7.

France drags on the bloc

France was the main drag on the euro area’s private sector. The region’s second-largest economy is grappling with fiscal and political tensions, and that weighed on overall business activity in October.

Still growing, but slower

The euro area’s PMI remained above 50, so the private sector is still expanding. But the drop from September shows momentum weakened and the October slowdown was sharper than analysts had projected.

What the numbers show

The composite index came in at 51.9. September’s reading was 53.1. The Bloomberg survey estimate was 52.7. The 50 threshold is the line between growth and contraction.