Eurozone Manufacturing Sector Remains Steady Despite Slowing Business Confidence

The Eurozone's manufacturing sector remained steady in September, according to flash data from S&P Global. The S&P Global Eurozone Manufacturing PMI held firm at 52.7, beating expectations of 52.6.

Output levels continued their upward trend, reaching a 55-month high of 53.4, up from 53.3 in August. New export orders rebounded, supporting growth, while employment remained broadly unchanged.

Firms increased purchasing activity for the second consecutive month, but at a modest pace. This helped maintain pre-production inventories, which had been declining since February 2023, and kept finished goods stocks stable.

However, input cost inflation accelerated, and output prices rose faster as well. Business confidence weakened, with manufacturers expressing less optimism about the year ahead.