Euro Zone Economy Defies Energy Shock with Surprising Resilience

Europe's economy is showing unexpected resilience in the face of war-driven energy shocks. Business activity across the euro zone accelerated in September at its fastest rate in over three years, according to S&P Global. The S&P Global Flash Euro Zone Composite PMI Output Index jumped to 53.1 in September from August's 52.0.

The survey showed solid growth in both manufacturing and service sectors across the euro zone. Germany, Europe's largest economy, expanded solidly despite firms facing increased inflationary pressures. France saw growth at its fastest pace in over two years, driven by a rebound in services demand.

In contrast, Britain outside the European Union experienced cooling growth as inflation pressure built. The bloc's services PMI bounced to its highest level in nearly a year and was well ahead of estimates for a fall. Firms were able to pass on some of the increased costs to customers.