FX.co ★ Eurozone Private-Sector Activity Rises to 1-1/2-Year High

The HCOB Eurozone Composite PMI increased to 52.2 in October 2025, up from 51.2 the previous month, surpassing market expectations of 51 and marking the highest expansion rate since May 2024. This growth was predominantly driven by the services sector, which ascended to 52.6 from 51.3 in September, reaching a peak not seen in a year. Meanwhile, the manufacturing sector surprisingly sidestepped contraction, with a reading of 50 compared to 49.8. The period saw an acceleration in new orders, strongly backed by domestic clients, which counterbalanced a renewed decline in export business. This positive momentum led firms to boost staffing levels, reversing the slight decrease observed last month. Additionally, backlogs of work remained stable for the first time since April 2023. Input cost inflation continued to ease for the second month, although the increase in output charges was the sharpest in seven months. However, looking ahead, business confidence dipped to its lowest in five months.