The latest edition of the HCOB Flash Eurozone PMI survey from S&P Global has found that the euro zone saw a continued increase in business activity in September, continuing the trend seen since the start of 2025.
The Composite Output Index for the month rose slightly to 51.2 (compared to 51.0 in August), with the index now standing above the 50 mark for the ninth consecutive month.
The acceleration in business activity in the euro zone was largely driven by the services sector, the data showed, which reported the fastest pace of growth so far this year. Manufacturing output also increased, but at a slower pace than in August.
Germany and France
Germany was a ‘key driver’ of business activity growth in September, the data showed – seeing its joint-fastest rate of growth since May 2023, while France saw activity decrease for the thirteenth consecutive month, and at the sharpest pace since April 2025.
The remainder of the euro zone saw output continue to grow, but the rate of expansion ‘moderated’.
The growth in business activity was achieved despite new orders remaining flat overall, with gains in services offset by falls in manufacturing. New export orders continued their decline, at the most advanced rate for six months.
Elsewhere, employment for the month remained relatively unchanged, with firms largely focused on clearing existing work rather than hiring, ending a six-month streak of job creation.
‘Growth path’
“The eurozone is still on a growth path,” commented Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “Manufacturing output has increased for the seventh month in a row, and business activity in the services sector has been expanding almost continuously since February 2024. “That said, we’re still a long way from seeing any real momentum.
“Cost inflation in the services sector, which the European Central Bank watches closely, has eased slightly but remains unusually high given the fragile economic backdrop. Selling prices have cooled more noticeably, which might just prompt the ECB to consider whether a rate cut before year’s end could be back on the table.” Read more here.
