Eurozone manufacturing sector gathers pace - PMI

(Sharecast News) - Growth across the Eurozone's factories accelerated in September, a closely-watched survey showed on Thursday, despite a backdrop of rising inflationary pressures. The S&P Global Eurozone manufacturing PMI came in at 52.9, up from August's 52.7 and confounding expectations for no change. The manufacturing PMI output index was also higher, rising by 0.3 to 53.6.

Fuelling the rises was a spike in new orders, which rose at the fastest pace since March 2022.

Price pressures remained, however, with rates of inflation for both input costs and output prices rising for the first since May, although they remain below the peaks seen at the start of the war in the Middle East.

Amid individual countries, the PMI softened to 53.9 from 54.3 in Germany. The bloc's largest economy, Germany is heavily reliant on manufacturing. The PMI also eased in France, but Italy and Spain moved into positive territory, at 50.4 and 51.0 respectively.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "September has seen a further encouraging improvement in manufacturing growth across the Eurozone. Measured across the Eurozone, production is rising at a rate not seen for four and half years, as firms boost capacity to meet rising demand.

"The upturn is being driven by rising demand for investment goods such as machinery and equipment. This reflects higher demand for AI and defence-related equipment in particular.

"Demand for consumer goods continues to fall, however, with the increase cost of living acting as a drag on household spending."

The PMI is based on questionnaires sent to panels of manufacturers in Germany, France, Italy, Spain, the Netherlands, Austria, Ireland and Greece, totally around 3,000 firms. Data were collected between 10 and 23 September.