Eurozone Business Growth Hits Three-Year High as Costs Rise

Eurozone business activity grew at its fastest pace since April 2023 in September despite rising energy costs, Reuters reported on 23 September.

S&P Global’s preliminary composite purchasing managers’ index rose to 53.1 from 52.0 in August. Economists polled by Reuters had expected 51.7. A reading above 50 signals expansion, not a percentage growth rate.

Services drove much of the improvement, with that sector’s index rising to 53.0 from 51.6. Manufacturing’s headline index held at 52.7. New orders grew at their strongest pace in more than four years, and companies added staff to meet demand.

The pressure point was costs. Firms faced higher operating expenses linked to elevated energy prices and passed some of those increases on to customers.

S&P Global economist Chris Williamson said the resilience could strengthen the case for another European Central Bank rate increase before year-end, potentially in October. That is an assessment, not an announced decision.

Source: Reuters, via AOL, 23 September 2026.

Cover: Frankfurt, Germany, viewed from Deutschherrnbrücke in June 2012. Illustrative file photograph. Photo: © Schlurcher / Wikimedia Commons, CC BY 4.0. Cropped.