Eurozone Manufacturing Sector Sees Four-Year High Growth Rate

Growth in the eurozone's manufacturing sector has reached a four-and-a-half year high, according to a recent survey by S&P Global. The S&P Global Manufacturing Purchasing Managers' Index (PMI) rose to 52.7 in August from 51.9 in July.

This marked the highest level since May 2022 and exceeded the 50.0 threshold that separates contraction from expansion.

The survey found that factory output and incoming new order volumes both increased at their quickest rates since early-2022, supporting renewed purchasing activity growth and a pick-up in business confidence.

However, inflation continues to be a concern, with input costs and output prices still above pre-war levels. Despite this, the pace of disinflation is starting to level off, according to S&P Global's Joe Hayes.