Eurozone downturn deepens as bloc’s three largest economies contract

By City Reporter

Updated: 08:34 BST, 4 October 2024

Europe’s three biggest economies shrank last month, sending the wider eurozone into reverse, as demand tumbled and confidence ebbed away. 

Germany, France and Italy experienced contractions in September – the first time they have done so simultaneously this year. 

Shrinking: Germany, France and Italy experienced contractions in September – the first time they have done so simultaneously this year

The purchasing managers’ index for the bloc fell from 51.0 in August to 49.6, on a scale where the 50-mark separates growth from contraction, and signifying the eurozone economy shrank for the first time since February. 

Germany, suffering a deepening industrial decline, is Europe’s biggest economy and spearheaded the downturn. 

France faded after an Olympics-driven boost while Italy shrank marginally. 

Cyrus de la Rubia, economist at Hamburg Commercial Bank, which compiled the survey, said: ‘It is Germany where things look bleakest, with companies cutting staff. ‘This is where the recession in manufacturing is making itself felt.’ 

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Eurozone downturn deepens as bloc’s three largest economies contract

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