Eurozone's Business Growth: A Tale of Two Economies
In September, Eurozone business activity saw the fastest growth in 16 months, driven by Germany's economic acceleration, contrasting with France's continued struggles amid political unrest. While the services sector thrived, manufacturing faced challenges, casting doubts on the sustainability of the bloc's economic growth.
In September, the Eurozone experienced its most rapid business activity growth in 16 months, as reported by a recent survey. Although the growth remained modest due to stagnant new orders, concerns arise over the bloc's economic sustainability, influenced by the contrasting performances of Germany and France.
The HCOB Flash Eurozone Composite Purchasing Managers' Index, surveyed by S&P Global, rose slightly to 51.2 from 51.0 the previous month, marking continuous growth for nine months. Germany's PMI hit a 16-month high, while France's economic activity contracted for the thirteenth month, reflecting political instability.
Inflationary pressures eased and services drove growth with a PMI increase to 51.4. However, manufacturing fell into contraction, affecting employment levels. As input costs decreased, the outlook suggests minimal near-term upturn potential, yet overall prices saw slower rises, hinting at controlled inflation.
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