LONDON—Eurozone business activity took a surprise turn for the worse this month as demand fell in a broad-based downturn across the region, a survey showed, entering the fourth quarter on the wrong foot and suggesting the bloc may slip into recession.
Tuesday’s purchasing managers’ survey will likely make disappointing reading for the European Central Bank, which meets on Thursday, and market pricing now suggests ECB President Christine Lagarde’s ‘higher-for-longer’ interest rate narrative may not last as some expect.
