Eurozone business activity hits 2026 high: PMIs
AgenciesEurozone business activity is growing at its fastest pace this year thanks to stronger new orders, particularly in manufacturing, and renewed export growth, according to bu...
Eurozone business activity surged to a 2026 high in August, driven by a surge in new orders, particularly in manufacturing, and increased exports, according to business surveys. The S&P Global flash PMI surveys for August revealed that the 21-nation economic bloc maintained resilience despite disruptions from the US-Zionist entity conflict in Iran.
The Composite PMI Output Index reached its highest level since November, rising to 52.1 from 52.0 in July, surpassing a Reuters poll estimate of 51.7. Readings above 50 signal growth. New orders surged at the fastest rate in 40 months, while export orders expanded for the first time since Russia's invasion of Ukraine in 2022. Despite rising oil prices and higher interest rates, the Eurozone economy demonstrated resilience.
The factory PMI surged to a four-year high, and overall output growth hit its strongest level in 54 months. Services activity remained steady after July's rebound, with the PMI unchanged at 51.7. Germany's economy expanded as an upturn in manufacturing balanced a sharper decline in services, while French activity contracted more than expected due to recent heatwaves affecting its services sector.
Employment in the Eurozone grew for the first time this year, with manufacturers resuming hiring after three years. However, firms expressed less optimism about the year-ahead outlook, with sentiment remaining lower than the series average.
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