Brussels (Brussels Morning Newspaper) – According to a report by Eurostat published on Wednesday, in September, industrial producer prices in the Eurozone decreased by 0.1% month-on-month and also by 0.1% month-on-month in the European Union.
As reported, the producer prices in the euro area also decreased by 0.2%, while they increased by 0.1% in the EU. In the Eurozone, durable consumer goods increased by 0.3% month-on-month and non-durable consumer goods increased by 0.1% month-on-month in September.
Capital goods and intermediate goods were stable month-on-month, and energy decreased by 0.2% month-on-month. Year-on-year, non-durable consumer goods were up 1.9%, capital goods up 1.8% and durable consumer goods up 1.6%. Energy prices fell by 2.4%, while prices for intermediate goods fell by 0.1%.
Why is the eurozone economy showing signs of stronger growth?
On the other hand, in October, the euro zone economy grew at its fastest rate since May 2023, moving away from earlier this year’s modest growth rates, as activity in the services sector accelerated and demand conditions improved, the survey indicated.
The HCOB Eurozone Composite Purchasing Managers’ Index, provided by S&P Global, climbed to 52.5 in October from 51.2 in September, for a 10th consecutive month of growth. This was the highest level in 29 months. PMI readings above 50.0 denote growth in activity.
“Finally, there’s something positive to report about the euro zone economy again. The services sector saw a solid upswing in October. When it comes to new business, you’d have to go back to May of last year to find a similarly strong increase,”
said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
How did the business witness October’s economic rebound?
New business volumes saw their largest rise in 2 and a half years, thanks entirely to growth in the services sector and no change in manufacturing orders. The composite new orders index surged from 50.6 to 52.1. Service providers raised their activity index from 51.3 in September to 53.0, marking a 17-month high.
Aggregate employment growth increased to a 16-month high after falling marginally in September, as service businesses increased hiring due to demand growth, while manufacturing firms were laying off employees at a faster pace.
