The eurozone is close to recession due to a slowdown in business activity

Business activity in the private sector of the eurozone in the last quarter of 2023 showed disappointing results. This may indicate a possible recession in the region's economy.

In October, the business activity index (PMI) from S&P Global reached a 3-year low, dropping to 46.5, which is well below the threshold of 50 points, reflecting the balance between growth and decline. 

Experts note the deteriorating economic situation in the eurozone, and even suggest the presence of a mild recession in the last two quarters of the year with negative dynamics. 

Against the background of this data, the euro-dollar exchange rate decreased by 0.1% to $ 1.0655, interrupting a three-day growth. The yield on 10-year German bonds fell by 8 basis points to 2.79%, being about 20 points below the maximum of the month. 

The main reasons for the weakness of the region's economy are the active actions of the European Central Bank to raise rates and the slowdown in the global economy. The increase in energy prices also exacerbates the problems.