Financial News: Eurozone Private Sector Maintains Expansion

Eurozone Private Sector Maintains Expansion

(RTTNews) - The euro area economy continued to expand in September, with broad-based growth in Germany, Italy and Spain, while France contracted further due to political uncertainty, final survey data from S&P Global revealed on Friday.

The final HCOB composite output index rose moderately to 51.2 in September, in line with flash estimate, from 51.0 in the previous month.

This marked the fourth consecutive month of expansion in the private sector, and the fastest growth since May 2024.

The HCOB services Purchasing Managers' Index advanced to 51.3 in September from 50.5 in August, exceeding the flash estimate of 51.4.

"The composite PMI has been in expansionary territory for the entire third quarter, so it can be assumed that GDP has grown in that quarter," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

"Our nowcast, which takes the PMI into account alongside other indicators, calculates a growth rate of 0.4 percent compared to the previous quarter," de la Rubia added.

The survey showed that the upturn in the private was again muted as demand barely improved and employment levels decreased. Confidence improved for the first time since June.

On the price front, the survey showed that input cost and output charge inflation eased in September. Germany's private sector growth reached a 16-month high in September, reflecting a combination of stronger manufacturing output growth and a renewed expansion in services business activity.

The final composite output index rose to 52.0 from 50.5 in August though it was below the initial estimate of 52.4.

Services firms registered the fastest growth in eight months in September. At 51.5, the services PMI rose from August's 49.3 but it was below the initial estimate of 52.5.

Elsewhere, the contraction in France's private sector deepened further in September. The composite output index posted a five-month low of 48.1, down from 49.8 in August. The flash score was 48.4.

The services activity fell at the joint-quickest pace since April. The services PMI dropped to 48.5 from 49.8 in August and remained below the estimate of 48.9.

Italy's private sector logged a steady growth in September as the expansion in services activity offset a moderate fall in manufacturing production. The composite PMI was unchanged at 51.7 in September. The services PMI logged 52.5 compared to 51.5 in August.

Spain's private sector growth was sustained in September with the services sector recording a marked acceleration. The composite output index rose slightly to 53.8 from 53.7 in the prior month. The services PMI registered 54.3 in September compared to 53.2 in August.

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