Eurozone private sector growth hits 41-month high
Private sector activity across the eurozone expanded at its fastest pace in almost three-and-a-half years in September, according to preliminary survey data released on Wednesday.
The HCOB flash eurozone composite purchasing managers' index, compiled by S&P Global, rose to 53.1 from 52.0 in August, its highest reading since April 2023. A reading above 50.0 indicates expansion.
Growth strengthened across both manufacturing and services. The services business activity index climbed to a 10-month high of 53.0 from 51.6, while the headline manufacturing PMI was unchanged at 52.7 – though the manufacturing output index edged up to 53.4 from 53.3, reaching a 55-month high.
New orders increased for a third straight month and at the fastest pace since May 2022, while export orders rose for a second month running following more than four years of decline. Employment also increased modestly.
Growth was broad-based, S&P Global said, with Germany recording its strongest expansion in almost a year and France returning to growth for the first time in 10 months.
However, inflationary pressures picked up, with input costs and selling prices rising at their fastest rates in four months.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the survey was consistent with quarterly GDP growth of around 0.4%. He added that the economy's resilience amid geopolitical and inflationary pressures would "likely embolden the ECB to hike interest rates again before the end of the year".