Euro Zone Business Activity Surges to Highest Rate in Over Three Years

The euro zone's business activity accelerated in September at its fastest rate in over three years, defying expectations of a slowdown. The S&P Global Flash Eurozone Composite PMI rose to 53.1 from August's 52.0, its highest reading since April 2023 and above the forecasted 51.7.

A reading above 50.0 indicates an expansion in activity. Chris Williamson, chief business economist at S&P Global, said 'it's no surprise' to see inflationary pressures rise again due to increased energy prices stemming from the conflict in the Middle East, but it's encouraging to see economic growth being reported.

New orders surged at their fastest pace in over four years, supported by a rise in exports. Both services and manufacturing industries contributed to the expansion, with the services PMI bouncing to 53.0 from 51.6, its highest in nearly a year.