Eurozone activity rises slightly, but exports flatline - PMI survey
By Frank Prenesti
Date: Tuesday 23 Sep 2025
(Sharecast News) - Business activity in the eurozone showed modest gains in September, led by the dominant services industry, but new orders stagnated as firms struggled to secure exports, according to flash estimates from a survey published on Tuesday.
The seasonally-adjusted HCOB eurozone composite PMI output index rose to 51.2 compared with 51 in the previous month - the ninth consecutive month above a reading of 50 which separates contraction from expansion.
Growth in business activity was due to the service sector posting the fastest rate of increase in 2025 so far, HCOB said. Manufacturing production also rose, but the rate of expansion eased from the near three-and-a-half year high registered in August and was only slight.
The services activity index hit a nine-month high of 51.4 from August's 50.5, while the manufacturing output index fell to 50.7 from 52.5 - a two-month low.
New business was unchanged in September, following a first rise in 15 months during August as total new order volumes were limited by difficulties securing fresh business from abroad, the survey found.
"The eurozone is still on a growth path. Manufacturing output has increased for the seventh month in a row, and business activity in the services sector has been expanding almost continuously since February 2024. That said, we're still a long way from seeing any real momentum," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
"Just consider that the composite PMI, which combines activity in both manufacturing and services, hit a modest 51.2 points and reached with this a 16-month high. The outlook for manufacturing is looking a bit cloudy."
"Production is still growing, but the pace is being dragged down by France, where the government shake-up in early September likely threw a wrench into companies' production plans. Apart from this, hopes for an acceleration in growth are not justified as new orders have dropped significantly in both Germany and France."
"In the medium term, higher defence spending could drive up demand for industrial goods. A more immediate impact might come from Germany's so-called investment booster and the infrastructure package. Still, according to the survey, confidence in rising output has actually dipped in both Germany and the eurozone overall."
Reporting by Frank Prenesti for Sharecast.com
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