Eurozone PMI Surges to 53.1 as Germany's Political Instability Bites

The Eurozone's preliminary composite PMI for September has come in at 53.1, exceeding expectations and its highest reading since April 2023.

This marks solid growth in both manufacturing and services sectors, with the latter being a key driver of improvement.

The jump is despite operating costs rising sharply, which may lead to another interest rate hike by the European Central Bank (ECB) as early as October.

However, the Euro struggles to gain traction due to ongoing political instability in Germany, where Chancellor Friedrich Merz's Christian Democratic Union (CDU) suffered significant defeats in state elections.