FX.co ★ Euro Area Manufacturing Expansion Gathers Pace

The S&P Global Eurozone Manufacturing PMI rose to 52.9 in September 2026, its highest level since May 2022 and above the preliminary estimate of 52.7. Demand strengthened markedly, with new orders increasing at their fastest rate since March 2022. Export sales also grew for a second consecutive month, marking the first sustained increase in overseas orders in more than four and a half years.

The upturn in demand put renewed pressure on factory capacity, as backlogs of work rose for the first time since April and at the sharpest pace in almost four and a half years. Employment edged higher, ending a prolonged period of job losses, and manufacturers stepped up their purchases of raw materials and intermediate goods at one of the fastest rates since May 2022.

Although supply delays persisted, they were the least severe since February. At the same time, business confidence climbed to a seven-month high, even as both input cost and output price pressures intensified.