European Investor
04 Nov 2026, 09:02
Eurozone Services Growth Slows in October as France Contracts Sharply
Eurozone services activity continued to expand in October, but momentum weakened more than expected as a sharp contraction in France offset relatively resilient readings elsewhere in the region.
The HCOB Eurozone Services PMI fell to 51.4 from 53.0, below the 51.7 forecast. The Composite PMI, which combines manufacturing and services activity, also declined to 51.7 from 53.1, missing expectations of 51.9. Both readings remained above the 50 threshold separating expansion from contraction, but pointed to a clear slowdown in overall business activity.
Among the major economies, Spain remained the strongest. Its Services PMI eased to 57.2 from 58.3, slightly below the 57.6 forecast but still indicating robust expansion.
Italy’s Services PMI improved to 52.0 from 51.7 and exceeded the 51.4 forecast, suggesting modest acceleration. Germany’s Services PMI slipped to 52.5 from 52.9 but beat expectations of 51.7, keeping the sector in expansion.
France was the major weak point. Its Services PMI plunged to 46.2 from 51.2, substantially below the 48.4 forecast and signaling a renewed contraction in activity.
Overall, the October data show that eurozone growth remains positive but is losing momentum. Resilience in Spain, Germany and Italy was insufficient to prevent both the regional Services and Composite PMIs from weakening, while the sharp deterioration in France highlights increasingly uneven economic conditions across the bloc.
Eurozone services activity continued to expand in October, but momentum weakened more than expected as a sharp contraction in France offset relatively resilient readings elsewhere in the region.
The HCOB Eurozone Services PMI fell to 51.4 from 53.0, below the 51.7 forecast. The Composite PMI, which combines manufacturing and services activity, also declined to 51.7 from 53.1, missing expectations of 51.9. Both readings remained above the 50 threshold separating expansion from contraction, but pointed to a clear slowdown in overall business activity.
Among the major economies, Spain remained the strongest. Its Services PMI eased to 57.2 from 58.3, slightly below the 57.6 forecast but still indicating robust expansion.
Italy’s Services PMI improved to 52.0 from 51.7 and exceeded the 51.4 forecast, suggesting modest acceleration. Germany’s Services PMI slipped to 52.5 from 52.9 but beat expectations of 51.7, keeping the sector in expansion.
France was the major weak point. Its Services PMI plunged to 46.2 from 51.2, substantially below the 48.4 forecast and signaling a renewed contraction in activity.
Overall, the October data show that eurozone growth remains positive but is losing momentum. Resilience in Spain, Germany and Italy was insufficient to prevent both the regional Services and Composite PMIs from weakening, while the sharp deterioration in France highlights increasingly uneven economic conditions across the bloc.
