Europe’s automobiles and auto parts sector recorded its strongest output in more than five years in October, according to the latest S&P Global Europe Sector PMI.
The sector recorded its strongest expansion in output since June 2021, moving into second place in the sectoral growth rankings. Software and Services recorded the fastest overall increase in activity, while Technology Equipment ranked third.
Sector expansion
Output expanded in 13 of the 19 sectors monitored by S&P Global. ‘This was down from 16 in September, which was the broadest growth since March 2023,’ it noted.
Software and Services and Technology Equipment have remained among the three fastest-growing sectors for the past nine months. At the broader industry-group level, Technology has been the fastest-growing group since February.
At the other end of the rankings, Forestry and Paper Products, Household and Personal Use Products, and Real Estate recorded the steepest declines in output.
Consumer Goods was the weakest-performing broad sector group and the only group to register a contraction, reversing its position in April, when it ranked second behind Technology.
Input cost pressures
The latest data also highlighted differences in input cost pressures between manufacturing and services.
‘Machinery & Equipment and Technology Equipment faced the steepest cost pressures, with Transportation the highest-ranked services sector in third,’ S&P Global said in its analysis. ‘These sectors all registered rates of input price inflation at or near their respective 2026 highs.
‘Chemicals was ranked fourth overall, though its rate of input price inflation was still well short of the 2026 peak set in May. The weakest cost pressures in October were registered in Other Financials and Real Estate.’
Job creation
Employment trends varied across sectors. Although Software and Services led the activity growth rankings, it was the only sector among the top six to record a fall in employment compared with September, the data showed. Technology Equipment recorded the fastest rate of job creation.
The S&P Global Europe Sector PMI is based on responses from purchasing managers at more than 8,000 private-sector companies across Germany, the UK, France, Italy, Spain, the Netherlands, Austria, Greece, Ireland, Poland, Romania and Czechia. Read more here.
