Eurozone Business Growth Hits over 3-1/2-Year High Despite Inflation Worries, PMI Shows
The services-led reading suggests 0.4% quarterly GDP growth, while export orders and input prices climbed at the fastest pace in months, S&P Global said.
- Eurozone business activity expanded at its fastest pace in nearly 3-1/2 years in September, with the composite index rising to 53.1 from 52.0 in August amid strong demand despite Middle East war concerns.
- Soaring energy costs drove inflation to 3.8 per cent last month from 3.2 per cent in August, intensifying price pressures as input and output prices rose at their fastest pace in four months.
- Chris Williamson, chief business economist at S&P Global Market Intelligence, said surveys signal GDP growing at a 0.4 per cent quarterly rate, with IT-related services driven by artificial intelligence investments.
- Rising price pressures hint at inflation running closer to 4 per cent than the European Central Bank's 2 per cent target, prompting markets to price in more than two ECB rate hikes by mid-next year.
- Overall new orders grew at their fastest pace in 41 months, buoyed by strong foreign demand, as Spain led the recovery followed by Ireland and Germany's accelerating business activity.
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%This trend reflects growth in the services sector, with the MIP accounting for 53 points above 51.6 points in August.
The growth of the euro area economy gained momentum in September 2026, closing the third quarter in a robust way. The Compound Purchasing Managers Index (PMI) of the region rose from 52.0 in August to 53.1 in September, reaching its highest level in almost three and a half years and signaling a solid expansion in the private sector's business activity. The Global S&P Services PMI, in turn, advanced from 51.6 in August to 53.0 in September, recor…
The Economic Times
Times of IndiaEurozone 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…
Euro zone business growth hits over 3-1/2-year high despite ...
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