Eurozone's Economic Upsurge Defies Expectations

In a surprising turn of events, Eurozone business activity grew at an accelerated rate in October, as companies received new orders at a pace not seen in over two years. The HCOB Flash Eurozone Composite PMI, compiled by S&P Global, climbed to 52.2, suggesting the region's economy is gaining momentum.

Services were at the forefront of this expansion, hitting a 14-month high with a PMI of 52.6, surpassing expectations, while manufacturing also saw slight growth. Employment trends varied, with service sectors hiring at their fastest since 2024, whereas manufacturing faced job cuts due to weak demand.

Overall operating costs saw a small dip, yet firms increased prices marginally. Inflation remained moderate, with the ECB unlikely to cut interest rates further given the current economic trajectory. Nonetheless, business confidence fell to a five-month low, hinting at underlying caution towards future growth.