Eurozone Services Activity Growth Slows in October

The S&P Global Eurozone Services PMI fell to 51.7 in October 2026 from 53.0 in the previous month, coming in below market expectations of 52.5. This marked a two-month low, indicating a moderation in services sector growth. The pace of job creation slowed to a five-month low, reflecting weaker growth in new business and reduced pressure on operating capacity. French services activity returned to contraction, while growth also softened elsewhere in the eurozone. Services input cost inflation eased, although firms faced a less favorable business outlook amid slowing activity and persistent inflationary pressures.

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.