FX.co ★ Eurozone Private Sector Activity Expands the Most in 16 Months

In September 2025, the HCOB Eurozone Composite PMI slightly rose to 51.2, up from 51 the previous month. This aligns closely with market predictions of 51.1, marking the briskest growth rate in the Eurozone's private sector in 16 months. The services sector fueled this growth, recording its highest mark of the year at 51.4, compared to 50.5 in August. This rise effectively counterbalanced an unexpected decline in manufacturing, which fell to 49.5 from 50.7. During this period, new orders remained relatively unchanged, as a notable uplift in services countered a fresh decline in factory orders, although export orders continued to decrease. Nevertheless, both sectors saw increased production, aided by a slight decrease in work backlogs. Constant demand for new business prompted companies to maintain their workforce, concluding a six-month period of job growth. Regarding pricing, input cost inflation fell below the series average, influencing a similar decrease in output charges. However, looking ahead, business confidence slipped to a four-month low.