In August 2026, the eurozone Composite PMI stood at 52 points, unchanged from July. The final reading was 0.1 points below the flash estimate. A figure above 50 signals growth in business activity, so the result points to a steady pace of expansion. The index remained at its highest level in eight months and close to its long-term average of 52.3.
The strongest increases in activity were recorded in Spain and Italy. Germany’s figures improved, although growth remained modest. France, by contrast, reported a contraction in business activity for the eighth consecutive month.
Employment rises for the first time this year
Employment in the eurozone’s private sector increased in August for the first time in 2026, supported by stronger sales. Companies also reported an improvement in new orders.
The industrial sector continued to gain momentum, while services returned to growth after weakening in response to the surge in energy prices at the start of the conflict in the Middle East. Overall, the August data supported expectations of steady eurozone growth in the third quarter.
Price pressures remain significant
Cost inflation for raw materials and other inputs eased slightly in August, while the pace of selling-price increases remained unchanged from July. Price pressures nevertheless persisted: in the services sector, both input costs and selling prices rose at their fastest pace in three months.
According to S&P Global’s economics team, the combination of resilient business activity and persistent inflation could support a more hawkish monetary policy stance.
The ECB has already raised its key interest rates
After the August PMI data were published, the European Central Bank raised its key interest rates by 0.25 percentage points. The new rates took effect on 16 September 2026. The decision followed an assessment of inflation risks and an updated price outlook.
