Euro-Zone downturn deepens, making recession more likely | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
May 30, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, MAY 30, 2025
Euro-Zone downturn deepens, making recession more likely

World+Biz

Bloomberg
25 October, 2022, 11:40 am
Last modified: 25 October, 2022, 11:43 am

Related News

  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • Strong external sector bolsters economic recovery hopes: GED
  • Inflation eased in April due to monetary, fiscal measures: Planning Commission report
  • Japan core inflation accelerates, rice prices soar 98%
  • Inflation expected to drop to 5% by end of 2025: BB governor

Euro-Zone downturn deepens, making recession more likely

Bloomberg
25 October, 2022, 11:40 am
Last modified: 25 October, 2022, 11:43 am
Infograph: TBS
Infograph: TBS

Highlights:

  • Composite PMI falls to 47.1, economists had expected 47.6
  • The steepest downturn in manufacturing, services fall accelerates

Private-sector activity in the eurozone contracted for a fourth month in October, reinforcing expectations that the bloc is headed for a recession.

An index of purchasing managers compiled by S&P Global slumped to its lowest level since April 2013, barring months when there were Covid-19 lockdowns. That was worse than economists had anticipated as record inflation hurts demand and some firms rein in production on weaker sales.

The steepest downturn came in manufacturing, especially energy-intensive sectors like chemicals and plastics. Services also shrank at a faster rate as consumers struggle with the cost-of-living crisis.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

New orders for goods and services fell for a fourth month – to a pace not seen since December 2012, excluding lockdown months.

"The euro-zone economy looks set to contract in the fourth quarter given the steepening loss of output and deteriorating demand picture seen in October, adding to speculation that a recession is looking increasingly inevitable," Chris Williamson, an economist at S&P Global, said on Monday in a statement.

Across the 19-nation currency bloc, soaring costs have put a brake on the pent-up demand that followed the pandemic, while Russia's stalled energy shipments are forcing households and industry to brace for potential outages this winter. Consumer confidence remains close to a record low.

Companies reported fewer component shortages and improved shipping in October, though this was often linked to suppliers being less busy due to weaker demand. Input buying by manufacturers fell at one of the steepest rates since the global financial crisis, indicating lower production needs and increasingly widespread decisions to lower inventory due to weaker-than-expected sales.

The uncertain outlook is leading some firms to hold back on hiring, while others are cutting staff amid signs of surplus capacity.

Fourth-Quarter contraction

Earlier readings for France and Germany also painted a bleak picture, with the private-sector activity in the former stalling for the first time since March 2021 and the latter contracting for the fourth month. 

UK and US data are also scheduled for Monday – both are likely to show negative readings. Australia's figure also was below the 50 threshold that separates expansion from contraction, while Japan grew again.

The euro-zone numbers suggest its economy will shrink by 0.2% in the fourth quarter, but the downturn may accelerate toward year-end, according to S&P Global's report.

"Price pressures, meanwhile, remain stubbornly elevated, as rising energy and staff costs, and the weakened euro, offset any lowering of commodity prices linked to improving supply conditions," Williamson said. "The elevated survey price gauges will likely add the European Central Bank's resolve to tighten policy further in the coming months despite the growing recession risk."

The ECB is expected to hike interest rates by 75 basis points this week for a second straight meeting.

Top News

Recession / inflation / purchasing

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Deep depression over Bay of Bengal on 29 May. Photo: ANI
    Heavy rain, tidal surges trigger flood warnings as deep depression crosses coast
  • Attackers vandalise the windows of the residence of Jatiyo Party (JaPa) Chairman GM Quader and set fire to a motorcycle in Rangpur on 29 May 2025. Photo: TBS
    Jatiyo Party chief GM Quader's Rangpur house attacked; NCP, SAD activists blamed
  • BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
    BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal

MOST VIEWED

  • Dhaka areas at a gridlock on Wednesday, 28 May 2025. Photo: Syed Zakir Hossain/TBS
    BNP, Jamaat rallies: Traffic clogs Dhaka roads, including Motijheel, Paltan, Dainik Bangla intersection
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Mohammad Abdul Mannan, chairman FSIB Ltd. Sketch: TBS
    FSIB to bounce back soon
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'
  • Md Nazrul Islam Swapan, chairman of EXIM Bank. Sketch: TBS
    Exim Bank restored depositors’ confidence, overcoming challenges
  • Mohammad Mamdudur Rashid, managing director and CEO, UCB. Sketch: TBS
    Customers’ trust and confidence fueling deposit growth at UCB

Related News

  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • Strong external sector bolsters economic recovery hopes: GED
  • Inflation eased in April due to monetary, fiscal measures: Planning Commission report
  • Japan core inflation accelerates, rice prices soar 98%
  • Inflation expected to drop to 5% by end of 2025: BB governor

Features

For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

6h | The Big Picture
The university will be OK. But will the US? Photo: Bloomberg

A weaker Harvard is a weaker America

6h | Panorama
The Botanical Garden is a refuge for plant species, both native and exotic. Photo: Mehedi Hasan/TBS

The hidden cost of 'development' in the Botanical Garden

6h | Panorama
Stillbirths in Bangladesh: A preventable public health emergency

Stillbirths in Bangladesh: A preventable public health emergency

6h | Panorama

More Videos from TBS

Record migrant deaths in 2024

Record migrant deaths in 2024

3h | Podcast
News of The Day, 29 MAY 2025

News of The Day, 29 MAY 2025

5h | TBS News of the day
Businesses set for relief as interim govt eyes major tax & fine cuts

Businesses set for relief as interim govt eyes major tax & fine cuts

8h | TBS Insight
Love is essential for human life

Love is essential for human life

7h | TBS Programs
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net