Eurozone private sector activity maintained its expansion in August, with the HCOB/S&P Global Composite Purchasing Managers' Index holding steady at 52.0, unchanged from July and above the 50.0 threshold that separates growth from contraction. The reading matched an eight-month high and remained close to the long-term average of 52.3.
Services sector activity slowed slightly, with the Business Activity Index declining to 51.6 from 51.7 in July, marking the weakest expansion in two months. The manufacturing sector continued to drive overall growth, while the services sector showed resilience despite elevated cost pressures linked to the Middle East conflict.
Regional performance diverged, with southern Eurozone economies leading the expansion. Spain and Italy posted strong increases in economic activity, while Germany recorded its fastest growth since March. France, however, extended its contraction streak to eight consecutive months.
New order growth matched July’s pace, representing the strongest joint improvement in demand since November 2025. The private sector also registered its first rise in new export orders in four and a half years, driven by manufacturing activity. Employment increased for the first time in 2026, with staffing levels rising in line with the survey’s historical average.
Input cost inflation eased marginally, though remained elevated compared to pre-war levels. Output price inflation held steady with July’s pace, suggesting persistent pricing pressures across the bloc.
Commenting on the data, Joe Hayes, Senior Economist at S&P Global Market Intelligence, said: "August’s PMI figures point to a solid third-quarter growth trajectory for the euro area. Industrial momentum has strengthened, while the services sector has overcome initial weakness following the surge in energy prices at the start of the Middle East war."
