Eurozone private business growth picks up: PMI


The 19-country Eurozone's business output hit a four-month high in September against consensus forecast of a small fall and pointed to strong growth in the third quarter, a survey showed Friday.

Germany's private sector economy ended the third quarter strongly, with business activity growth accelerating to the fastest in nearly six-and-a-half years, according to flash PMI survey data from IHS Markit.

Flash services PMI was recorded at 55.6 vs. 54.8 estimated.

Business activity in the U.S. picked up in September despite hurricanes Harvey and Irma, as growth in the manufacturing sector helped to offset an easing in services, according to preliminary data released on Friday.

It's thought the eurozone could now see its economy grow by 0.7 per cent in the thrid quarter.

"The rise in business activity and accompanying build-up of price pressures will fuel expectations that the European Central Bank is poised to announce its intention to rein back some of its stimulus, reducing its asset purchases in 2018".

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Euro zone private businesses ended the quarter growing far more strongly than forecast, boosted by manufacturers, says a survey that indicates the momentum should carry into next month.

Data showed that rates of expansion in France and Germany accelerated to the highest seen for over six years in September. The reading was better than economists' projection of 55.6. Improved performances were reported in both manufacturing and services in September. The euro gained 0.4 per cent to US$1.1989, on track to end the week higher.

The manufacturing index nudged up to 53.0 from 52.8, in line with expectations.

Suggesting the solid pace would be maintained next month, factories built up a surplus of orders at the steepest rate in the sub-index's 15-year history.

"On the eve of the president's signature labor reforms, perhaps the key takeaway of the latest survey is another marked rise in employment", said Alex Gill, economist at IHS Markit.