Europe's Economy Defies Energy Shock Expectations
The European economy has shown greater resilience than expected despite rising energy costs and disruptions linked to conflicts in the Middle East and Ukraine. According to the latest S&P Global business survey, the euro zone's private sector expanded at its fastest pace in more than three years in September.
The S&P Global Flash Euro Zone Composite PMI Output Index rose to 53.1 in September from 52.0 in August, indicating that business activity is expanding. This improvement was broad-based, with both manufacturing and services contributing to stronger activity.
New orders across the euro zone increased at their fastest pace in more than four years, supported by stronger exports and increased trade within the currency bloc. Services activity also improved sharply, reaching its highest level in almost a year and exceeding expectations.