Euro-zone business activity expanded at its fastest pace in more than three years in September, according to S&P Global’s latest purchasing managers survey.
The composite PMI rose to 53.1, its highest level since April 2023. A reading above 50 indicates expansion.
New orders return to growth
New business increased at its strongest pace in 41 months, while export orders ended a long period of contraction. Spain led the expansion, with Germany also improving.
The survey suggests the euro-area economy may be growing at roughly 0.4% quarter on quarter, although that estimate is not an official GDP figure.
Inflation pressure complicates the picture
Input and selling prices rose more quickly as energy costs increased, raising concern that stronger activity could arrive alongside renewed inflation pressure.
The data are likely to be watched closely by the European Central Bank as markets debate the path of interest rates.
Sources: S&P Global/HCOB PMI; Reuters, Oct. 5, 2026.
