Eurozone composite PMI points to steady private sector growth

(Sharecast News) - Private sector activity across the eurozone expanded more or less as expected in August, according to the final reading of the S&P Global composite purchasing managers' index on Thursday, with solid growth across both the services and manufacturing industries. The final estimate of the composite PMI was revised to 52.0, just 0.1 down from the initial estimate released two weeks ago but in line with July's eight-month high.

Employment increased for the first time in 2026, while pricing pressures remained stable, with easing input cost pressures combined with steady output price inflation.

Inflation, however, "remained high by historical standards", S&P Global said, trending above levels seen before the Middle East conflict broke out, while the disinflationary trends recorded since price pressures peaked in May have now stalled.

The final reading of the services PMI was revised down 0.1 points to 51.6 from the initial estimate - and July's level - of 51.7, while the manufacturing PMI came in at 52.7 from 51.9 previously.

Joe Hayes, the senior principal economist at S&P Global Market Intelligence, said August's data puts the eurozone "on track for a solid quarter of growth in Q3".

"It's noteworthy that the August data indicated a stalling of the disinflationary trend witnessed since the PMI prices indices peaked in May. Taken alongside the resilience in economic activity as illustrated by the latest figures, the European Central Bank may feel a tightening of policy at next week's meeting is now justified."