Source: Sharecast
The latest HCOB Eurozone composite PMI output index increased for the fourth month in a row in September, to 51.2 from 51.0 in August.
Within that, the services PMI business activity index rose to 51.3, up from 50.8, which helped offset the manufacturing PMI output index easing to 49.8 from 50.7.
A reading above the neutral 50.0 benchmark indicates growth, while one below it suggests contraction.
The composite index is a weighted average of both the services and manufacturing indices.
In Germany – the bloc’s biggest economy – the composite PMI hit 52.0 in September, a 16-month higher. In Spain it come in at 53.8, and at 51.7 in Italy.
However, in France – which has been hit by ongoing political uncertainty – the economy continued to falter, with a PMI of 48.1.
Across the Eurozone service sector, respondents cited a pick-up in demand, although growth was limited to domestic markets. Input costs and output prices also rose at their slowest rates in two and four months respectively.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: “Things are running a little more smoothly in the service sector.
“The increase in new business suggests that the sector is likely to grow again next month. However, new orders have not yet been sufficient to increase backlogs. Nevertheless, service providers are taking a more positive view of the environment.
“The service prices data, which is under particular scrutiny by the Eurozone’s monetary authorities, are likely to confirm the stance for those European Central Bank members who do not want further interest rate cuts.”
The Eurozone composite PMI is based on surveys sent to around 5,000 service sector and manufacturing firms. The data were collected between 11 and 25 September.
