Eurozone flash Manufacturing PMI remains steady at 52.7 in September

The flash Manufacturing Purchasing Managers' Index (PMI) for the Eurozone remained unchanged at 52.7 in September, defying expectations of a decline to 52.6. The Composite PMI increased to 53.1 from 52.0 in August, surpassing economists' predictions of a lower overall business activity at 51.5. The Services PMI grew faster than anticipated to 53.0 from estimates of 51.7, indicating robust economic growth.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that the rising business growth suggests GDP is likely to rise by 0.4% quarterly, with order book growth accelerating in September. The European Central Bank may raise interest rates again before the year's end, given the resilient economic growth despite geopolitical issues and inflation, Williamson added.

The Euro (EUR) experienced selling pressure after the release of the preliminary HCOB PMI data, dropping 0.3% to 1.1412. The Manufacturing PMI, a leading indicator of business activity in the Eurozone manufacturing sector, is published monthly by S&P Global and Hamburg Commercial Bank (HCOB). A reading above 50 indicates expansion, while a reading below 50 signals contraction, both of which impact the EUR's value.