Eurozone Economy Faces Accelerating Contraction in September

The Eurozone's manufacturing sector has worsened, with the Manufacturing PMI dropping to 44.8 in September, a nine-month low, while the Services PMI fell to 50.5, below forecasts. The overall Composite PMI has contracted to 48.9, indicating deeper economic stagnation as new orders decline and employment growth in the services sector slows. The downturn is particularly pronounced in Germany, where significant job cuts have occurred and pessimism in manufacturing has surged, with a technical recession now anticipated. France also faces challenges as the temporary boost from the Olympics faded, leading to a PMI drop to 47.4, confirming a lack of sustained growth. Despite easing cost pressures, the outlook remains bleak, leaving the European Central Bank under pressure to respond to the economic slowdown. Analysts predict that while there may be some hope for recovery in the fourth quarter, current indicators suggest continued economic struggles for the Eurozone.