Data released at the start of the European session on Friday, October 23, showed a decline in the Eurozone’s services and manufacturing PMIs, while the UK figures were positive and exceeded expectations for October. The Eurozone services PMI fell to a two-month low of 51.7 in October, compared to 53 in September (expected 52.6), while the manufacturing PMI dropped to a three-month low of 52.4 from 52.9 in September (expected 52.7).

In detail, French indicators were negative, with the services Purchasing Managers’ Index (PMI) falling to 48.4 in October, compared to 51.2 in September, marking its lowest reading in two months (expected 50.7). Conversely, the manufacturing PMI declined to 49.3 in October, its lowest reading in 11 months, compared to 50.6 in September (expected 50.5).

In Germany, the services PMI fell to its highest level in two months, reaching 51.7 in October, compared to 52.9 in September, falling short of expectations of 52.5. The manufacturing PMI rose to 54.2, compared to September’s reading of 53.9, its highest level in two months (expected 53.5).

In a related development, data from the United Kingdom came in positive in September, with the manufacturing index coming in better than expected at 53.1 points, its highest level in 8 months compared to September’s reading of 51.9. In contrast, the services index rose to its highest level in five months at 52.8 compared to September’s reading of 52.1 (expectations 8.51).