Eurozone Private-Sector Activity Deteriorates

2026-05-06 08:15 By Andre Joaquim 1 min. read

The S&P Global Eurozone Composite PMI fell to 48.8 in April of 2026 from 50.7 in the previous month, revised marginally higher from the preliminary estimate of 48.6 but remaining firmly below the initial market expectations of 50.2.

It marked the first contraction in the EA private-sector activity in 16 months, reflecting a somewhat delayed impact on the services sector (47.6 vs 50.2 in March) from the war in Iran as higher energy costs weighed on consumer demand, enough to offset higher activity for manufacturers (52.3 vs 52).

The contrast was consistent with swings for new orders and contracts, which contracted for services but expanded for goods producers.

Private-sector employment dropped slightly, but the fall was contrastingly led by manufacturers.

Input cost inflation at the aggregate surged to a 40-month high due to the increase in energy costs from the war in the Middle East, driving both sectors to increase their output charges.

Consistently, business confidence deteriorated.



News Stream
Eurozone Output Growth Confirmed at 3-1/2-Year High
The S&P Global Eurozone Composite PMI rose to 53.1 in September 2026 from 52 in August, matching the flash estimate and reaching its highest level in nearly three and a half years. The latest reading pointed to a solid acceleration in private-sector activity, with both manufacturing and services recording stronger growth as the third quarter ended. Demand also improved, with new orders rising at the fastest pace in 41 months and foreign orders increasing at their strongest rate in more than four and a half years. Capacity constraints became more apparent, as backlogs increased for the first time since June 2022, prompting companies to expand their workforces again. Business confidence remained positive but relatively subdued. Meanwhile, inflationary pressures intensified, with input costs and selling prices rising at their fastest rates since May.
2026-10-05
Eurozone Output Growth Hits Three-and-a-Half-Year High
The S&P Global Eurozone Composite PMI rose to 53.1 in September 2026, up from 52.0 in August and above market expectations of 51.7, according to a preliminary estimate. The latest reading marked a third consecutive month of expansion in business activity, with growth accelerating to its fastest pace in almost three-and-a-half years. Growth strengthened across both manufacturing and services, reaching 55- and 10-month highs, respectively. Germany expanded for a third straight month at its fastest pace in just under a year, while France returned to growth for the first time in 10 months. New orders rose at their fastest pace since May 2022, driving the first increase in backlogs since June 2022. Employment also increased, although the pace of job creation remained modest. Meanwhile, inflationary pressures intensified, with input costs and output prices rising at their fastest rates in four months. Business confidence weakened again and remained relatively subdued.
2026-09-23
Eurozone Private-Sector Growth Holds Firm in August
The S&P Global Eurozone Composite PMI came in at 52.0 in August 2026, broadly in line with the preliminary estimate of 52.1 and little changed from July’s eight-month high. The latest data point to another solid quarter of growth in Q3, supported by improving industrial activity and a recovery in services following the initial impact of the surge in energy prices at the start of the Middle East conflict. New orders increased at the same solid pace as in July, while new export orders rose for the first time in four and a half years. Employment also expanded for the first time this year, although backlogs continued to decline at a slower pace. Inflationary pressures were broadly stable, with input costs easing slightly while output prices rose at the same pace as in July. However, price pressures remained elevated by historical standards. Business confidence was unchanged.
2026-09-03