Euro zone business activity grows at fastest pace in more than three years

Business activity across the euro zone accelerated in September at its fastest pace in more than three years. The S&P Global flash composite PMI rose to 53.1 from 52.0 in August, the highest reading since April 2023 and well above the 51.7 forecast in a Reuters poll. A reading above 50 indicates expansion. New orders increased at their fastest pace in more than four years, helped by stronger demand and a further rise in exports. At the same time, firms reported a steeper increase in operating costs, reflecting higher energy prices and renewed inflation pressure. The stronger-than-expected growth signal adds to the European Central Bank’s challenge of balancing economic resilience against persistent inflation risks.