Eurozone private sector activity hits one-year high in August – PMI

Eurozone private sector activity expanded at its fastest pace in a year in August, though overall growth remained subdued, according to the HCOB Eurozone PMI survey published on Wednesday.

The Composite PMI Output Index, compiled by Hamburg Commercial Bank (HCOB) and S&P Global, inched up to 51.0 from 50.9 in July, marking an eighth straight month above the 50.0 growth threshold. Manufacturing output posted its strongest rise in more than three years, but services growth was only marginal, limiting momentum.

New orders rose for the first time since May 2024, driven mainly by factory sales, while private sector employment grew at the fastest pace in 14 months. Spain led growth among eurozone economies, while France remained the weakest performer, though its downturn showed signs of stabilisation.

Input cost inflation accelerated to its highest since March, with services remaining the main source of price pressures. Firms lifted output charges at the quickest rate in four months.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser