Eurozone economic growth slows to its weakest level in four months in October

Economic growth in the eurozone slowed to its weakest level in four months in October, weighed down by intensifying inflationary pressures, according to data released in a S and P Global report on Friday.

The eurozone composite purchasing managers' index (PMI), a key indicator of business activity, fell to 51.9 in October, the lowest level since June this year, the report showed.

France was the main drag, with its flash composite PMI coming in at 48.4 in October, the services PMI at 48.4 and manufacturing at 49.3, all below the 50 threshold.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

The report also said that the intensifying inflationary pressures in October were the main reason for the overall slowdown in the eurozone economy.

Hit by rising energy prices, manufacturers saw input costs climb sharply, forcing them to raise selling prices to protect profit margins.

The escalating conflict in the Middle East has pushed up energy, fuel and transport costs, further adding to companies' cost pressures. Persistently high inflationary pressures could strengthen market expectations that the European Central Bank (ECB) will further tighten monetary policy.

The Wall Street Journal said on Friday that there was no sign of an end to the ongoing Middle East conflict. Energy prices may remain elevated. The longer the situation persists, the greater the pressure on European economy.

Eurozone economic growth slows to its weakest level in four months in October

The U.S. consumer sentiment kept falling in October for the third month in a row, as purchasing power continued to dominate consumer views of the economy, according to findings of a survey released on Friday.

The final reading released by the University of Michigan Surveys of Consumers showed that the Index of Consumer Sentiment weakened to 48 in the October 2026 survey, 0.2 percent below September, and 10.4 percent below a year ago. The index was also 15 percent less than in February, just prior to the Iran conflict.

The Current Economic Conditions Index fell to 46.7, down from 50.9 in September and below last October's 58.6. The Index of Consumer Expectations inched up slightly to 48.8 from 46.3 in September, but was still below last October's 50.3.

Year-ahead inflation expectations in October ticked up from 4.6 percent in September to 4.7 percent. Long-run inflation expectations also stepped up from 3.4 percent in September to 3.5 percent. Inflation expectations over both time horizons increased for the second straight month to their highest readings since May.

The survey noted that Americans' dissatisfaction with how high prices are affecting their living standards continued to grow. In October, the share of consumers reporting that high prices are dragging down their personal finances rose for the fourth consecutive month to 56 percent, up from 45 percent in January.

US consumer sentiment continues to slip in October over inflation