Higher Oil Prices Outweighed By Softer Demand Outlook

Eurozone PMI printed below expectations in both services and manufacturing, likely driven by the weakness in the German prints released earlier. Some select notes from the release include similar themes to the French/German prints, though there is some indication that weakening demand is offsetting the inflationary impulse from higher oil prices in the last months:

• "Despite reports of higher oil prices having added to firms’ costs over the month, the average cost of inputs into factories fell sharply in October amid discounting as supply exceeded demand"
• "The downturn in new orders and the accelerated depletion of backlogs of orders prompted firms to reduce employment for the first time since January 2021."
• "Average prices charged for goods and services rose at a marginally weaker rate in October".
• The release notes that ex-Germany and France, "the latest fall in the rest of the region was the largest for a year thanks to a steepening manufacturing downturn and a renewed fall in services activity".