Euro zone factory growth accelerates again in September, PMI shows

Euro zone factory growth accelerated in September, reaching its fastest pace in over four years, according to an S&P Global survey. The Eurozone Manufacturing Purchasing Managers' Index (PMI) rose to 52.9 in September from 52.7 in August, marking its highest level since May 2022. This surge in factory activity was driven by resilient demand for investment goods, with output of capital goods growing at a rate not seen since the post-COVID rebound five years ago.

The Netherlands led the expansion, while Germany recorded solid growth, and expansion was modest in France, Italy, and Spain. New orders expanded at their fastest rate since early 2022, supported by export growth hitting a more than four-and-a-half-year high. Business confidence climbed to its strongest level since February, but rising prices due to both input and output inflation could pose a challenge to the recovery.

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