Key facts
- Euro zone business activity grew at its fastest pace since November in August, with the Composite PMI at 52.1.
- New orders and export growth in the Eurozone reached multi-month highs.
- Germany's manufacturing PMI hit a four-year high of 52.8, while services activity declined.
- India's private sector activity saw a slight recovery, driven by services growth offsetting a manufacturing slowdown.
- Input cost and output price inflation eased across the Eurozone.
- Employment in the Eurozone rose for the first time this year.
Euro zone business activity expanded at its fastest pace this year in August, buoyed by stronger new orders and a return to export growth, according to a survey by S&P Global. The Composite PMI Output Index rose to 52.1, exceeding expectations and marking the highest level since November.
New orders saw their fastest growth in 40 months, while export orders increased for the first time since Russia's invasion of Ukraine in February 2022. Manufacturing was the primary driver, with its PMI reaching a more than four-year high of 52.8, while services activity held steady at 51.7.
Germany's business activity grew modestly with a Composite PMI of 51.0. Its manufacturing sector showed renewed momentum, with its PMI rising to a 51-month high of 54.1, though services activity declined further to a three-month low of 48.5.
In India, private sector activity saw a slight recovery, with the Composite PMI at 54.6. This was driven by a rebound in the services sector (PMI 54.5), which offset the weakest expansion in manufacturing in five years (PMI 52.9).
Overall employment in the Eurozone rose for the first time this year, with manufacturers resuming hiring. Price pressures continued to ease, with input cost growth at its slowest in six months and output price inflation at a five-month low. However, firms remained less optimistic about the year-ahead outlook.