Eurozone service sectors continues to expand at steady pace in October

The Eurozone services sector in October expanded at a slightly slower pace than initially expected, figures released on Wednesday showed.

The final reading of Markit’s purchasing managers’ index (PMI) showed the index monitoring expansion in the services sector rose from September four-month low of 53.7 to 54.1 last month, slightly below the 54.2 flash estimate released last week.

The reading means the index has now remained above the neutral 50.0 mark since August 2013, as business optimism in the 19-country block remained largely positive.

Meanwhile, the Eurozone composite PMI rose from 53.6 in September to 53.9 in October, slightly below the 54.0 flash estimate.

The figure marked the 28th consecutive month of increase, Markit said, adding the increase was driven by increase in both the manufacturing and service sectors.

New orders rose at the quickest pace for six months, which in turn maintained the pressure on capacity at manufacturers and service providers alike as highlighted by rising levels of outstanding business.

“The final PMI data confirm the steady but still somewhat lacklustre economic growth recorded in the euro area at the start of the fourth quarter,” said Markit’s chief economist Chris Williamson.

“The survey suggests that the region’s quarterly growth rate remains constrained at around 0.4%.

“A small upturn in the rate of growth of new orders suggests that the upturn may gather momentum in November, but the pace of growth looks set to remain frustratingly weak given the amount of stimulus in play at the moment.”