Inflation-Resilient Factories Boost Eurozone Growth Amid Rising Interest Rates
Rising inflation pressures have led several central banks to hike interest rates, pushing up borrowing costs for firms. However, surveys show that many factories are reaping the benefit of a surge in demand for their products.
The eurozone's manufacturing PMI rose to 52.9 in September from 52.7 in August, its highest level since May 2022, partly due to stronger demand for AI-related goods.
Growth was broad-based across the bloc, with the Netherlands leading the expansion. Germany recorded solid growth while expansion was modest in France, Italy, and Spain.
South Korea's factory activity grew at its biggest margin in four months as export demand grew at its fastest pace in 15-1/2 years. Taiwan's PMI hit 56.7 in September, up from 54.7 in August.