Key facts
- Euro zone business activity expanded at its fastest pace in over three years in September.
- The S&P Global Flash Euro Zone Composite PMI Output Index rose to 53.1 in September.
- UK business activity growth cooled in September, with the composite PMI falling to 51.7.
- Prices charged by UK services companies rose at the fastest pace in four months.
- S&P Global's survey pointed to quarterly UK economic growth of around 0.1% in September.
Euro zone business activity accelerated in September at its fastest rate in over three years, defying expectations for a slowdown, according to a survey by S&P Global. The S&P Global Flash Euro Zone Composite PMI Output Index jumped to 53.1 in September from 52.0 in August, surpassing the 51.7 forecast in a Reuters poll. A reading above 50.0 signals an expansion in activity.
Both the services and manufacturing industries contributed to the expansion. The services PMI rose to 53.0 from 51.6, its highest reading in nearly a year, while the manufacturing index held steady at 52.7, with a gauge of output nudging up to 53.4. Overall new orders surged at their fastest pace in over four years, supported by a rise in exports. Firms took on more staff to meet demand but faced a steeper jump in input costs due to elevated energy prices, passing some of these onto customers.
Meanwhile, growth in British business activity cooled in September, reaching a three-month low, as inflation pressures intensified. The S&P Global UK Services Purchasing Managers' Index (PMI) fell to 51.7 from 52.5 in August, below economists' forecasts of 52.0. Prices charged by services companies rose at the fastest pace in four months, driven by a rise in energy prices stemming from the escalating war in Iran. S&P Global's survey pointed to quarterly economic growth of around 0.1% in the UK, compared with 0.4% in the second quarter.