FX.co ★ Eurozone Private Sector Activity Grows Most in 1 Year

The HCOB Eurozone Composite PMI edged up to 51 in August 2025, a slight improvement from July's 50.9, though modestly revised down from the preliminary estimate of 51.1. Nevertheless, it surpassed initial market expectations of 50.7. This marks the third consecutive month of strengthening, showcasing the Eurozone's most significant expansion in private sector activity in a year. The manufacturing sector saw a resurgence, rising to 50.7 from 49.8 in July, while growth in the service sector slowed slightly to 50.5. Aggregate new orders increased for the first time in 15 months, even with a decline in new export orders. This indication of rising demand for capacity prompted firms to boost their workforce numbers at the fastest rate in 14 months. Concurrently, input cost inflation hit a five-month peak, leading to increased output charges. Despite the encouraging headline figure, business confidence remained largely unchanged, hindered by concerns over U.S. tariffs and prevailing economic challenges in the Euro Area.