Eurozone Services Activity Growth Strongest in 10 Months

The S&P Global Eurozone Services PMI rose to 53.0 in September 2026 from 51.6 in August, in line with preliminary estimates and marking the strongest reading since November 2025. New business increased for a third consecutive month at the joint-fastest pace since November, driven mainly by domestic demand, while export sales were unchanged. Service providers also reported the first increase in outstanding work since October 2025, suggesting workloads exceeded capacity. Employment continued to rise, although job creation slowed slightly from August. On the price front, input cost inflation accelerated to a four-month high, while output price inflation rose at its fastest pace since February 2024. Meanwhile, business confidence remained positive but subdued by historical standards.

The S&P Global Eurozone Services PMI was inched down to 51.6 in August of 2026 from 51.7 in the previous month, revised marginally lower from the flash estimate of 51.7 but still remaining close to the initial market expectations of 51.5. The result consolidated the recovery in the Eurozone's services sector after the war in the Middle East triggered a surge in energy prices that resulted in PMI contractions in the three months to June. New orders grew as domestic demand in respective bloc countries outpaced export orders. New business levels rose more than those of output, even though firms continued to deplete their backlogs. The mark of resilience in demand drove companies to raise employment the most in eight months. Still, input costs rose to three-month highs as wholesale energy costs regained traction in the period.

The S&P Global Eurozone Services PMI was unchanged at 51.7 in August 2026, slightly above market expectations of 51.5, according to flash estimates. The reading remained at its highest level since February, with rising tourism spending helping to support economic growth, particularly outside France and Germany, where the region recorded its fastest pace of services growth in more than three years. New export orders remained stable, while service providers also increased the pace of job creation during the month. Regarding prices, input costs rose at a slightly faster pace than in July, while the increase in output prices moderated, potentially marking the joint-lowest rate so far this year, alongside March. However, business confidence in the sector weakened, suggesting that firms were cautious about the year-ahead outlook.