Eurozone Manufacturing Hits 52-Month High in September
Eurozone manufacturing expanded to a 52-month high in September, driven by AI and defense spending despite a growth slowdown in France.
Manufacturing across the Eurozone expanded in September, with the PMI Manufacturing index reaching 52.9, a 52-month high. The Output Index rose to 53.6, marking its strongest level in 55 months. This recovery was geographically broad, as all eight surveyed economies recorded growth for the first time in over four years, led by the Netherlands, Ireland, and Austria.
S&P Global attributed the surge primarily to investment goods, specifically machinery and equipment linked to artificial intelligence and defense spending. This demand drove the fastest growth in new orders since March 2022 and the first increase in factory employment after three years of declines. However, consumer-goods demand remained weak due to cost-of-living pressures.
In contrast, France experienced a slowdown in growth during the same period. The final PMI for the French manufacturing sector fell to 50.6 from 51.1 in August. While French factory production maintained back-to-back expansions for the first time since February, new order inflows contracted for a fifth consecutive month as customers remained hesitant.
Across the region, the recovery has been accompanied by renewed inflation. Both input costs and output prices rose at faster rates for the first time since May, signaling intensified price pressures alongside the industrial momentum.
