Eurozone Manufacturing Growth Hits Four-Year High Amid Rising Inflation

The eurozone's manufacturing growth accelerated in August to its highest level in more than four years. According to a survey by S&P Global, the eurozone Manufacturing Purchasing Managers' Index (PMI) rose from 51.9 in July to 52.7 in August, surpassing the 50 threshold that indicates expansion.

This increase was driven by higher demand for goods within the region and abroad, with export orders rising for only the second time in four and a half years. Germany recorded its strongest manufacturing growth in more than four years, while France contributed to the overall expansion.

However, not all countries shared in this growth. Manufacturing activity declined in Italy and Spain. The European Central Bank's two-percent inflation target remains out of reach, as annual inflation rose from 2.9 percent in July to 3.3 percent in August, according to preliminary data from Eurostat.