Euro Area Business Activity Holds Steady, Inflation Risks Remain Elevated

The euro area's business activity kept pace in August, matching the eight-month high seen in July.

According to preliminary estimates, both output and new order inflows increased at a solid pace, with demand growth being the strongest since November last year.

Employment also expanded for the first time this year, driven by another month of broad-based sales growth.

However, price pressures remained stable, with input cost pressures easing slightly and output prices increasing at the same rate as in July. Despite this, inflation rates remain high by historical standards.