Eurozone composite PMI hits 41-month high as services growth accelerates

5th Oct 2026 09:00

(Sharecast News) - Service-sector growth across the eurozone picked up as expected in September, according to the final estimates of the services purchasing managers' index released on Monday from S&P Global, sending business activity across the region to its highest in three and a half years.

The services PMI increased to 53.0 last month, up from 51.6 in August and matching the preliminary estimates released two weeks ago. This marked the highest rate of expansion - indicated by any reading above 50.0 - since November 2025.

The acceleration pushed overall private sector activity across the single currency union - calculated by the weighted average of the manufacturing PMI output index and the services PMI - to a 41-month high, with the composite PMI rising to 53.1 from 52.0.

Demand improved over the month and employment levels increased, though inflationary pressures intensified with both input costs and prices charged rising at their quickest pace since May.

"Growth reflected broad-based strength, according to underlying sector data, with output in both the manufacturing and service industries expanding at faster rates at the end of the third quarter," the survey said.

Among the largest nations, Spain continued to be the fastest-growing economy across the region, while Germany's upturn picked up pace with growth close to its highest levels since early-2022. Growth rates in Italy and France were more modest, however.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said the data indicates that eurozone GDP is growing at a 0.4% quarterly rate.

"Although the drivers of growth vary between countries, across the eurozone as a whole IT-related services are showing especially solid growth, buoyed by AI investments and supported by professional and commercial services growth. Perhaps more surprising is the resilience of consumer-oriented services growth, given recent energy price hikes, notably driving the above-par growth in Spain," Williamson said.

However, he added: "A renewed upturn in price pressures signalled by the survey meanwhile hints at eurozone inflation running closer to 4% than the ECB's 2% target. Combined with the acceleration of growth indicated by the PMI, the data will spur further speculation of more aggressive monetary policy tightening."