LONDON—The drop in eurozone business activity deepened last month, a survey showed, probably extinguishing any hope the currency union would avoid recession just as elevated inflation puts pressure on the European Central Bank to act.
Businesses and consumers are wary of spending as the region heads into the winter months with already high energy prices likely to climb further, while firms are also suffering from supply chains disrupted by Ukraine’s war.
S&P Global’s final composite Purchasing Managers’ Index (PMI) for the eurozone, seen as a good gauge of economic health, fell to a 20-month low of 48.1 in September from August’s 48.9. Anything below 50 indicates contraction….