Eurozone business activity accelerated strongly in October, with HCOB Services PMI finalized at 53.0, the highest in 17 months, up from 51.3 in September. Composite PMI also climbed to 52.5, a 29-month high, signaling the region’s strongest pace of expansion since early 2023. The rebound was broad-based across major economies, though notable divergences remain, with Spain and Germany leading the upturn while France continues to lag.
Among individual countries, Spain topped the rankings with a Composite PMI of 56.0, marking a 10-month high. Germany’s index surged to 53.9, its best in 29 months, followed by Ireland (53.7) and Italy (53.1). In contrast, France slipped further into contraction at 47.7, an eight-month low.
According to Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, the services sector’s upswing was supported by the strongest growth in new business since May 2023. Rising orders encouraged firms to hire more staff, providing hope that the expansion could prove sustainable into year-end.
Cost inflation in services has eased slightly, though selling price inflation ticked up, suggesting companies are regaining some pricing power amid firmer demand. For the ECB, the PMI figures pose no immediate inflationary threat.
Full Eurozone PMI services final release here.
