Euro zone factory growth accelerates again in September, PMI shows
S&P Global said new orders and output hit multi-year highs as rising prices increased pressure on the European Central Bank.
- On Thursday, final survey results from S&P Global showed the Eurozone Manufacturing Purchasing Managers' Index rose to 52.9 in September, marking the third consecutive month of growth and reaching its highest level since May 2022.
- Rising demand for investment goods like machinery and equipment drives the upturn, with output of capital goods growing in September at rates unseen since the post-COVID rebound five years ago.
- Factory growth accelerated to its fastest rate in more than four years, with the Netherlands leading the expansion across the bloc while Germany recorded solid growth and France, Italy, and Spain saw modest expansion.
- Rising input and output prices fuel speculation about additional rate hikes, with markets currently pricing in three European Central Bank rate hikes by mid-2027 as inflation rose to 3.6% in September from 3.2% in August.
- Despite industrial gains, consumer goods demand continues to fall as the increased cost of living drags on household spending, Chris Williamson, chief business economist at S&P Global Market Intelligence, warned.
52 Articles
52 Articles
%This trend reflects growth in the services sector, with the MIP accounting for 53 points above 51.6 points in August.
Eurozone business growth hits over 3-1/2-year high despite inflation worries, PMI shows
Eurozone business activity experienced significant growth in September due to strong demand despite inflation concerns. The S&P Global Eurozone Services PMI and composite index reflected this growth, reaching high levels not seen in several months. Strong performance was observed in Spain and Ireland, along with an accelerated recovery in Germany. Inflation pressures increased, raising speculation on potential European Central Bank interest rate…
The economic climate index stood at 107.6 points in September from 107.2 points in July, according to IOBE. The IOBE economic climate survey According to an IOBE economic climate survey, this improvement comes from a relative improvement in expectations in Industry and Services, with the remaining sectors, Construction and Retail Trade, moving downwards, while consumer confidence is improving significantly. In Construction, a sharp decline is ob…
It strengthened slightly in September to 107.6 points, with improvements in Industry and Services and a significant increase in consumer confidence. Construction and Retail Trade moved downwards.
The results of a new economic survey showed that the growth of the manufacturing sector in the euro area continued to rise over the past September, recording its fastest pace in more than four years.
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