Eurozone business activity hits 3.5-year high

Eurozone business activity grew in September at the fastest pace since April 2023, according to S&P Global data published Wednesday.

The eurozone purchasing managers' index, a gauge of overall economic health, rose to 53.1 in September from 52 in August. A reading above 50 indicates growth, while a reading below 50 signals contraction.

S&P Global said the expansion was supported by growth in services and manufacturing.

Chris Williamson, S&P Global's chief business economist, said inflation pressure was rising again because of higher energy prices linked to the Middle East conflict, but that economic growth had shown resilience.

The European Central Bank raised interest rates this month for the second time this year as renewed Middle East fighting raised concerns about inflation, and signalled that further increases were possible.

Williamson said resilient growth and rising prices could strengthen the case for another ECB rate increase before the end of the year, putting an October hike “very much on the table.”