LONDON, Oct 2 (Reuters) - A key market gauge of long-term euro zone inflation expectations fell on Wednesday to its lowest level since June, within sight of record lows hit that month, a day after dismal U.S. manufacturing data fueled concern about weak global growth.
The five-year, five-year breakeven forward, an inflation measure followed by the European Central Bank, fell to as low as 1.1459%.
It is down around 17 bps from highs hit a day after the Sept 12 ECB meeting and back within sight of record lows hit in June around 1.13%.
The renewed decline in inflation expectations follows Tuesday’s weak euro zone inflation numbers and the Institute for Supply Management’s U.S. manufacturing activity index reading, which fell in September to its lowest level in a decade. (Reporting by Dhara Ranasinghe; editing by Yoruk Bahceli)