The S&P Global flash euro zone composite PMI fell to 51.9 in October from 53.1 in September, its lowest since June and below every forecast in a Reuters poll, as energy-driven cost increases and a renewed contraction in France weighed on activity. Input costs rose for a second consecutive month, but firms raised selling prices more slowly than in September, suggesting squeezed margins. Higher interest rates are also starting to dampen demand, and a Reuters poll expects the ECB to hold its 2.50% deposit rate next week before raising it by 25 basis points in December, as inflation runs at nearly double its 2% target. Business confidence fell to a five-month low, with manufacturing seeing the sharpest drop, while France showed contraction and its business confidence hit the lowest since 2012 outside the pandemic period. French government borrowing costs have also jumped on investor concerns about the country's finances.
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EuropeECBinterest ratesinflationeuro
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Related tickers and likely impact
EUR/USD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 1.12044 |
| Change that session | -0.11% |
DXY
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 101.74 |
| Change that session | +0.11% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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