Euro Zone Economy Slumps as Demand Falls, But Downturn May Not Be as Bad as Feared

Euro zone economy likely contracted in Q3 according to survey, with demand falling at fastest pace in almost 3 years.

Retail sales in euro zone fell much more than expected in August, pointing to weaker consumer demand.

Services activity contracted in France and Italy, but edged up in Germany and expanded slightly in Spain.

Inflation remains high but September PMI suggests downturn less severe than initially feared.

Despite weak demand, services firms still increasing headcount at faster pace than in August.