Euro Zone Economy Grows at Fastest Pace This Year

The euro zone's economy has shown resilience in recent months, growing at its fastest pace this year. According to S&P Global's flash PMI surveys for August, the 21-country economic bloc expanded by 0.4% in the second quarter.

New orders have risen at their fastest rate in 40 months, and export orders have increased for the first time since Russia invaded Ukraine in February 2022. The factory PMI has risen to a more than four-year high of 52.8 from 51.9, beating the poll estimate of 51.8.

However, price pressures are still high, with inflation at 2.9% in July. Despite this, employment in the common currency bloc has risen for the first time this year as manufacturers resumed hiring after more than three years.