Euro Area Services PMI Revised Lower

The S&P Global Eurozone Services PMI was revised lower to 51.4 in October 2026 from a preliminary of 51.7 and compared to 53 in September, signalling a slowdown in the services sector at the start of the fourth quarter. New business intakes dipped slightly, a notable deviation from the solid growth seen throughout each month of the third quarter. To support activity, firms depleted backlogs of work. Outstanding order volumes declined for the eleventh time in the past 12 months. October data signalled a renewed drop in services employment, the first seen since May. Price pressures in the service sector eased slightly, with the rates of inflation for output charges and input costs ticking down for the first time since July.

The S&P Global Eurozone Services PMI fell to 51.7 in October 2026 from 53.0 in the previous month, coming in below market expectations of 52.5. This marked a two-month low, indicating a moderation in services sector growth. The pace of job creation slowed to a five-month low, reflecting weaker growth in new business and reduced pressure on operating capacity. French services activity returned to contraction, while growth also softened elsewhere in the eurozone. Services input cost inflation eased, although firms faced a less favorable business outlook amid slowing activity and persistent inflationary pressures.

The S&P Global Eurozone Services PMI rose to 53.0 in September 2026 from 51.6 in August, in line with preliminary estimates and marking the strongest reading since November 2025. New business increased for a third consecutive month at the joint-fastest pace since November, driven mainly by domestic demand, while export sales were unchanged. Service providers also reported the first increase in outstanding work since October 2025, suggesting workloads exceeded capacity. Employment continued to rise, although job creation slowed slightly from August. On the price front, input cost inflation accelerated to a four-month high, while output price inflation rose at its fastest pace since February 2024. Meanwhile, business confidence remained positive but subdued by historical standards.