Eurozone PMI falls to 20-month low in September

The rate of economic expansion across the eurozone hit a 20-month low in September as growth slowed in Germany, Italy and Spain, according to a survey released on Wednesday.

The composite purchasing managers' index (PMI), a widely used indicator of economic conditions, was 52.6 in September, down from 52.9 in August, said Markit, a global data supplier.

The reading, although above the boom-or-bust level of 50, recorded the lowest since the start of 2015.

Although Ireland and Spain had the fastest expansions of economic output, the rates of increase slipped to 39- and two-months respectively.

France was the only one of the four largest euro states to signal an increase in output growth in September. The improvement took its pace of expansion to a 15-month high. While Germany saw the rate of growth slowing to a 16-month low.

The sectors dynamics of the "big-two" nations contrasted noticeably, said Markit. In France, stronger growth in services output more than offset a near-stagnant manufacturing sector. Germany saw manufacturing production expand at an elevated rate, while service sector activity slowed closer to stagnation.

The eurozone's service PMI also fell to a 21-month of 52.2 in September.

"The slowing rate of growth across the region in part reflects growing caution among businesses in terms of their spending due to worries about the economic outlook, linked in many cases to political uncertainty," said Chris Williamson, chief economist at IHS Markit.

"We see this trend persisting into next year, as the impact of Brexit is exacerbated by uncertainty surrounding elections in France and Germany alongside ongoing political unrest in Italy and Spain," said Williamson. Endit