The purchasing managers' index in October fell to a two-year low, as growing tensions in trade relations and new tariffs, along with growing political uncertainty, had a negative effect on exports and business optimism.
At the same time, the European Central Bank was hoping for good news, as it plans to stop its asset purchase program with a budget of 2.6 trillion euros by the end of the year, disabling one of the main instruments to stimulate the eurozone economy. The index of purchasing managers from IHS Markit, which is the most accurate indicator of economic health in general, fell to 53.1 points in October from 54.1 points in September, which is the lowest figure since September 2016.
In general, the block economy grew by 0.2 percent in the third quarter and, according to analysts, in the current quarter the growth will reach 0.4 percent.
Among the negative factors for the euro, Brexit remains in the first place, the ongoing trade war between the United States and China, as well as the end of Angela Merkel's political career, all this has a negative effect on business sentiment.
