Economic growth in the euro area slowed more than expected that exports fell sharply as global growth slowed and the US-China trade war continued. Data from the Markit Statistics Office showed that the composite purchasing managers' index fell from 53.1 to 52.4 points to settle near its lowest level since 2014, below expectations of 53.0 points.
The gauge of the new export sector, which includes intra-member trade, fell from 49.2 to 48.9 in October. The manufacturing PMI fell from 52.0 to 51.5 points, a level not seen since mid-2016, while the PMI of the service sector fell from 53.7 to 53.1 points.
With no sign of the end of the US-China trade war on the horizon, the pace of export growth in Germany has declined. The Business Outlook fell to 60.3 from 62.1, its lowest level in nearly four years. The slowdown came as factories began cutting back old demand at their fastest pace in nearly four years. The labor accumulation index fell to 48.4 from 49.0.
