Eurozone business activity near 3.5-year high in September

Brussels: Business activity in the eurozone grew in September at the fastest pace since April 2023, data showed Wednesday, buoyed by solid expansion in the services and manufacturing industries.

The eurozone purchasing managers' index (PMI) published by S&P Global, a gauge of the economy's overall health, registered a September reading of 53.1 after 52 in August.

A reading above 50 indicates growth while a figure below 50 signals contraction.


Read more: Trump backs India-Middle East-Europe Economic Corridor, says need to shift energy infra away from Iranian checkpoints

"It's no surprise to see inflationary pressures on the rise again in September, given the increase in energy prices emanating from the ongoing conflict in the Middle East, but more encouraging is the resilience of economic growth being reported," S&P chief business economist Chris Williamson said in a statement.

The European Central Bank (ECB) raised interest rates this month for the second time this year as renewed Middle East fighting fanned fears of higher inflation, and indicated that further increases were possible.

Read more: Chinese container vessel sails to Europe via Arctic, cutting shipment times in half

Economists echoed those expectations.

"The resilience of economic growth amid the headwinds of geopolitical issues and rising prices will likely embolden the ECB to hike interest rates again before the end of the year, adding to the case for rates to rise sooner rather than later to put an October hike very much on the table," Williamson said.