Eurozone business activity grew at the fastest pace in 15 months in August, supported by a rebound in new orders, provisional PMI data showed on Thursday. The HCOB Flash Eurozone Composite PMI Output Index rose to 51.1 from 50.9 in July, marking its third consecutive monthly increase and extending the current eight-month expansion. Growth was driven by manufacturing, which posted its strongest production rise in nearly three-and-a-half years, while services activity expanded only slightly. New orders rose for the first time since June 2024, ending a 14-month decline, though export demand continued to weaken, falling at the sharpest rate in five months. Employment increased for a sixth month, led by the services sector, while manufacturing jobs continued to shrink. Inflationary pressures intensified, with both input costs and output prices rising at faster rates than in July. Germany recorded solid manufacturing-led growth, while French activity neared stabilisation after months of contraction. Elsewhere in the euro area, growth moderated slightly. Business confidence across the bloc weakened for the second consecutive month in August. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
