Eurozone Business Climate Resilient Amid Rising Inflation

The business climate in the Eurozone remains resilient despite rising inflation, according to recent surveys. However, household confidence has fallen back, with consumer confidence recording its first decline in five months.

The PMIs show that the business climate in services has improved and manufacturing sector remains in expansion territory for the eighth consecutive month. In contrast, consumer confidence has been affected by rising inflation and concerns over purchasing power.

Rising energy prices have contributed to a strengthening of inflationary pressures, with the year-on-year inflation rate increasing to 3.8% in September, up from 2.2% in August. Excluding energy, inflation rose by 0.2 percentage points to 2.3%.