Eurozone Economy Booms to 41-Month High Amid Broad-Based Growth

The Eurozone economy is experiencing its strongest expansion in over three years, according to a recent survey. The Flash Composite PMI rose to 53.1 in September, marking the highest level since October 2018. This growth is broad-based across sectors, with the Services PMI climbing to 53.0 from 51.6 and the Manufacturing Output Index reaching 53.4 from 53.3.

The improvement also extends geographically, with Germany's Composite PMI surging to 53.8 from 51.8, an 11-month high. France returned to expansion for the first time in 10 months, driven mainly by services, which rose to 51.4 from 48.0.

However, alongside this growth, inflation pressures have strengthened at a four-month high, with both input costs and output prices rising. S&P Global linked part of the increase to higher energy prices stemming from the Middle East conflict.