Eurozone Manufacturing Growth Hits Four-Year High Amid Strong Demand
The Eurozone's manufacturing sector showed significant growth in September, reaching its fastest pace in over four years. According to the S&P Global Eurozone Manufacturing Purchasing Managers' Index (PMI), the reading rose to 52.9 in September from 52.7 in August, marking a third consecutive month of improvement.
The growth was driven by stronger demand for investment goods, including machinery and equipment, with capital-goods production recording its strongest expansion since the post-pandemic rebound. The Netherlands recorded the strongest expansion, while Germany, the bloc's largest economy, posted solid growth. France, Italy, and Spain registered more modest increases.
New orders rose at their fastest pace since early 2022, helped by stronger exports, which reached their highest level in over four and a half years. Factory output also strengthened, with the output sub-index climbing to 53.6, its highest level in 55 months. The improvement helped lift business confidence to its strongest level since February.
However, the recovery faces a potential challenge from rising price pressures, as both input costs and factory-gate prices rose faster in September. Official inflation data due on Friday is expected to show eurozone consumer inflation accelerating to 3.6% in September from 3.2% in August.