Eurozone Private Sector Expands Most Since Early 2023

(RTTNews) - The euro area private sector posted its strongest expansion since May 2023, supported by improved demand conditions, final survey data from S&P Global showed on Wednesday.

The HCOB final composite output index improved to 52.5 in October from 51.2 in September. This was the highest score since May 2023, indicating a breakout from the generally subdued growth trend seen throughout 2025 so far. Manufacturing and services contributed to the euro area expansion in October. Factory production growth picked up but at a marginal pace, while services registered marked acceleration of growth.

The HCOB final services Purchasing Managers' Index rose to 53.0 in October from 51.3 in the previous month. The score suggested the fastest growth in output for almost a year-and-a-half.

"France is clearly putting the brakes on eurozone economic growth," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

"On the bright side, it's not just Germany where the expansion rate has picked up significantly," de la Rubia added. The economist noted that the recovery is gaining broader traction.

At the national level, the latest PMI figures showed an almost broad-based improvement in economic conditions across the single-currency union. Spain outperformed the other countries as it reported the fastest growth in ten months.

Germany's business activity grew at the strongest rate in almost two-and-a-half years. Italy also logged faster expansion. In contrast, France moved in the opposite direction, falling to an eight-month low.

Germany's private sector output growth quickened to a 29-month high in October. The composite output index rose to 53.9 from 52.0 in September. The flash reading was 53.8.

The upturn was driven in part by stronger demand in both monitored sectors. The final services PMI hit 54.6, up from 51.5 in the previous month and also above the initial score of 54.5.

Meanwhile, France's private sector logged its sharpest decline since February. The composite output index dropped to 47.7 from 48.1 in September. The reading was above the flash estimate of 46.8.

The services PMI hit a six-month low of 48.0, down from 48.5 in the previous month. The flash reading was 47.1.

Italy's private sector expanded at the fastest pace in 19 months in October. The composite output index advanced to 53.1 from 51.7 in September.

The upturn reflected a stronger rise in services activity and renewed growth in manufacturing output. The services PMI advanced more-than-expected to 54.0 from 52.5 in the prior month. The score was seen at 53.0.

Similarly, Spain's private sector logged its highest growth so far this year. The composite output index hit 56.0 compared to 53.8 in September. The services PMI registered 56.6, up from 54.3 in September.