The publication of manufacturing and services data from the European Zone and the United Kingdom (UK) became the main focus of the market today after it exhibited mixed readings in September.
French business activity again showed a contraction with a four-month low in September to 47.5 from 51.5, after seeing a significant decline in services following the increase in Covid-19 cases in the country in recent weeks.
However, the manufacturing sector, on the other hand, rebounded in September with an increase to 50.9 from 49.8 previously recorded.
Meanwhile in Germany, the manufacturing sector showed the largest expansion in 2 years with an increase of 56.6. This is supported by an increase in production in line with increased inflows in new jobs.
Meanwhile, the services sector in Germany recorded a slight decline at 53.7, indicating relatively slow growth in business activity in September.
Ultimately, this situation has led to an increase in the manufacturing sector in the European Zone with an increase of 53.7, while the services sector again recorded a contraction with a fall of 47.6.
However, the sharp slowdown in the services sector this month is of particular concern to IHS Markit business economist Chris Williamson who said the European Zone could fall into recession in the next three months due to this contraction.
Meanwhile, also a concern at the European session was the production of manufacturing sector data in the UK which met market expectations but recorded a decline from the highest level recorded 2 years previously recorded, while service activity also showed a decline.
