The euro zone economy grew in October at the fastest rate since May 2023, with growth accelerating and timidly pointing to a break in the contained trend observed in the first nine months, it was announced this Wednesday, 5th.
The composite PMI (Purchasing Managers Index) of the euro zone, the Hamburg Commercial Bank (HCOB) and S&P Global, published today, rose to 52.5 points in October, 1.3 points more than in September and the highest level in 29 months.
In a statement released today, HCOB and S&P Global highlight that October saw the biggest increase in demand for goods and services in the euro zone in two and a half years, as new businesses grew at the fastest rate in two and a half years.
“Employment growth, in turn, accelerated to the highest level in 16 months, despite a slight slowdown in business activity expectations for the following year,” the statement said.
As for prices, inflation in the costs of production factors decreased for the second consecutive month, remaining even further below the historical average, he adds.
Commenting on the PMI data, Cyrus de la Rubia, chief economist at HCOB, said that “there is finally something positive to report on the eurozone economy again.”
“One of the main drivers of growth in the services sector in October was Germany”, considered Rubia, specifying that “the jump in the index in Germany — which rose more than three points to 54.6 points — is impressive and more than compensates for the drop recorded in France, where political tensions are reducing people’s willingness to spend”.
“Maintaining this relatively strong growth momentum in the services sector in the euro zone in the coming months will not be easy,” warned Rubia.
“In France, political stability would help — approving the 2026 budget would be a step in that direction — and in Germany much will depend on whether the Government’s stimulus package will really motivate companies and households to invest and spend more”, he concluded.
Even excluding Germany and France, composite PMIs for the rest of the euro zone show the strongest growth in two and a half years, Rubia said, adding that “in that sense, the recovery is gaining broader momentum.”