Euro zone factory growth accelerates again in September, PMI shows
Resilient demand pushed new orders and output to multi-year highs, while rising input costs and selling prices raised fresh inflation concerns, S&P Global said.
- On Thursday, final survey results from S&P Global showed the Eurozone Manufacturing Purchasing Managers' Index rose to 52.9 in September, marking the third consecutive month of growth and reaching its highest level since May 2022.
- Rising demand for investment goods like machinery and equipment drives the upturn, with output of capital goods growing in September at rates unseen since the post-COVID rebound five years ago.
- Factory growth accelerated to its fastest rate in more than four years, with the Netherlands leading the expansion across the bloc while Germany recorded solid growth and France, Italy, and Spain saw modest expansion.
- Rising input and output prices fuel speculation about additional rate hikes, with markets currently pricing in three European Central Bank rate hikes by mid-2027 as inflation rose to 3.6% in September from 3.2% in August.
- Despite industrial gains, consumer goods demand continues to fall as the increased cost of living drags on household spending, Chris Williamson, chief business economist at S&P Global Market Intelligence, warned.
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The economic climate index stood at 107.6 points in September from 107.2 points in July, according to IOBE. The IOBE economic climate survey According to an IOBE economic climate survey, this improvement comes from a relative improvement in expectations in Industry and Services, with the remaining sectors, Construction and Retail Trade, moving downwards, while consumer confidence is improving significantly. In Construction, a sharp decline is ob…
It strengthened slightly in September to 107.6 points, with improvements in Industry and Services and a significant increase in consumer confidence. Construction and Retail Trade moved downwards.
The results of a new economic survey showed that the growth of the manufacturing sector in the euro area continued to rise over the past September, recording its fastest pace in more than four years.
Eurozone factory growth hits four-year high in September on strong demand
Eurozone manufacturing growth accelerated to a four-year high of 52.9 in September, driven by robust demand for capital goods and rising exports. However, accelerating input costs and expected consumer inflation of 3.6% pose fresh risks, heightening market expectations of further rate increases by the European Central Bank.
Eurozone Manufacturing Activity Gathers Momentum
The euro area manufacturing activity strengthened in September as production and new orders grew at their sharpest rates since early 2022, final survey results from S&P Global showed Thursday. The final manufacturing Purchasing Managers' Index rose to 52.9 in September from 52.7 in the previous month.
Growth has continued to improve throughout the eurozone. Among the four largest economies, Germany has by far the best mood.
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