Economic activity in the eurozone accelerated sharply in September. The preliminary composite PMI rose to 53.1 from 52.0 in August, its highest level since April 2023 and well above the 51.7 reading expected by economists surveyed by Reuters.
The improvement was broad-based. Both services and manufacturing remained in expansion territory, while new orders strengthened and business activity grew at the fastest pace in more than three years.
Services accelerate, manufacturing holds firm
The services business activity index rose to 53.0 from 51.6, reaching a 10-month high. The headline manufacturing PMI remained at 52.7, while the manufacturing output index increased to 53.4 from 53.3, its strongest level in 55 months.
Germany recorded a third consecutive month of expansion, with the pace of growth the fastest in almost a year. France returned to growth after 10 months of declining activity, while the rest of the euro area also posted solid expansion.
New orders grow at fastest pace since May 2022
Demand improved noticeably. New business rose for a third consecutive month and at the fastest rate since May 2022. Export orders increased for a second month after 53 consecutive months of decline, with manufacturing leading the improvement.
Companies also increased employment slightly for a second consecutive month. Hiring rose in services and was broadly stable in manufacturing. Germany recorded its strongest employment growth since mid-2023, while French companies continued to reduce headcount.
Survey points to around 0.4% quarterly GDP growth
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said the September PMI reading was consistent with eurozone GDP growth of around 0.4% quarter on quarter.
The stronger growth signal was accompanied by renewed price pressure. Input costs and selling prices rose at their fastest pace in four months, partly reflecting higher energy costs.
That combination — stronger activity and firmer prices — may influence expectations for the European Central Bank’s next interest-rate decisions. Markets will be watching whether the improvement persists and whether the inflation component broadens beyond energy-related pressures.
The September data indicate that the eurozone entered the autumn with more momentum than expected, although the recovery remains exposed to geopolitical risks, energy prices and external demand.
Sources: S&P Global preliminary eurozone PMI, September 2026; Reuters.
