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.

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.

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.