The Eurozone composite purchasing managers’ index rose to 53.1 points in September from 52 points in August, its highest level since April 2023 and above the survey forecast of 51.7 points, according to a survey released on Wednesday, despite a sharp rise in companies’ operating costs.
Orders and services support growth
A purchasing managers’ index reading above 50 points indicates growth in activity. Total new orders rose at their fastest pace in more than four years, supported by a further increase in exports, including trade between Eurozone countries.
The services and manufacturing sectors contributed to growth, with the services purchasing managers’ index rising to 53 points from 51.6 points, its highest level in about a year and above expectations for a decline to 51.5 points.
The manufacturing index held steady at 52.7 points, the level recorded in August, while the output index edged up to 53.4 points from 53.3 points.
Energy prices push up operating costs
Companies hired more employees to meet increased demand, but faced a sharp rise in input costs because of higher energy prices following the US war against Iran. Companies passed some of these costs on to customers, raising concerns about continued inflationary pressures in Eurozone economies.
