Global Private Sector Activity Shows Mixed Trends in September: US Accelerates Sharply, Japan Slows Amid Persistent Inflation
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
- Eurozone Composite PMI hits 53.1, a three-and-a-half year high.
- France Composite PMI returns to expansion at 51.2.
- US Composite PMI soars to 58.4, a five-year high.
- Japan growth slows to four-month low; Manufacturing PMI 54.1.
The Eurozone’s private sector activity saw a significant acceleration in September, with the flash Composite Purchasing Managers’ Index (PMI) rising to 53.1. This figure surpassed market expectations of 51.7 and marked the fastest expansion in nearly three-and-a-half years, up from 52.0 in August. The robust growth was broadly based, reflecting strong performances in both the services and manufacturing sectors across the euro area, notably including a return to expansion in France where the composite PMI reached 51.2. This resilience in business activity, despite ongoing inflation pressures and external headwinds, could strengthen the case for the European Central Bank (ECB) to maintain a hawkish stance regarding future monetary policy decisions.
New data reveals a mixed picture for global private sector activity in September. In the United States, S&P Global flash PMIs showed significant acceleration, with the Composite PMI rising to 58.4, the Services PMI hitting 58.7, and the Manufacturing PMI reaching 57.0. These figures represent five-year highs across the board, driven by strong domestic demand, the strongest employment growth since June 2022, and the highest input cost inflation since October 2022. Conversely, Japan’s private sector growth slowed to a four-month low. The Manufacturing PMI eased to 54.1 from 54.9, though it remained in expansionary territory. Both goods producers and service providers recorded slower rates of output and new order growth, while inflationary pressures remained intense, with selling prices near record levels.