FX.co ★ Euro Area Business Activity Growth at 9-Month High

The Eurozone flash composite PMI edged up to 52.1 in August 2026 from 52.0 in July, marking a nine-month high and surpassing expectations of 51.7. The improvement was driven by a stronger manufacturing sector, with factory output rising at its fastest rate in four and a half years. Germany was a key driver of this momentum, posting its strongest manufacturing expansion since January 2022. New orders increased, and export demand returned to growth for the first time in four and a half years, indicating a pickup in external demand. In response to the stronger activity, firms increased staffing, adding further evidence of resilience in the regional economy. At the same time, price pressures showed signs of easing, suggesting a gradual moderation in inflation. However, business confidence softened over the month and remained relatively subdued, underlining ongoing uncertainty about the economic outlook despite the more robust activity data.