{"id":438628,"date":"2026-09-23T15:01:00","date_gmt":"2026-09-23T08:01:00","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/eurozone-pmi-jumps-as-services-surge-price-pressures-keep-ecb-october-rate-hike-in-play-438628\/"},"modified":"2026-09-23T15:01:00","modified_gmt":"2026-09-23T08:01:00","slug":"eurozone-pmi-jumps-as-services-surge-price-pressures-keep-ecb-october-rate-hike-in-play","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/eurozone-pmi-jumps-as-services-surge-price-pressures-keep-ecb-october-rate-hike-in-play-438628\/","title":{"rendered":"Eurozone PMI jumps as services surge, price pressures keep ECB October rate hike in play"},"content":{"rendered":"<div>\n<ul>\n<li>Eurozone September flash services PMI 53.0 vs 51.5 expected<\/li>\n<li>Prior 51.6<\/li>\n<li>Eurozone September flash manufacturing PMI 52.7 vs 52.6 expected<\/li>\n<li>Prior 52.7<\/li>\n<li>Eurozone September flash composite PMI 53.1 vs 51.7 expected<\/li>\n<li>Prior 52.0<\/li>\n<\/ul>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Following the stronger showings in both <a href=\"https:\/\/investinglive.com\/news\/france-pmi-jumps-back-into-expansion-in-september-but-inflation-pressures-complicate-the-ecb-outlook\/\" rel=\"follow\">France<\/a> and <a href=\"https:\/\/investinglive.com\/news\/germany-september-flash-manufacturing-pmi-xx-vs-54-0-expected\/\" rel=\"follow\">Germany<\/a> earlier, the more robust business activity in the overall euro area here was very much expected.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The latest reading signalled a third consecutive<br \/>\nmonthly expansion in business activity in the region, with it being the fastest in almost three-and-a-half years.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Solid growth was registered across both the manufacturing<br \/>\nand services categories, with the latter in particular being a key driver of the improvement in September.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The latest rise in output was also broad based across the<br \/>\ndifferent geographies covered by the data. Germany posted<br \/>\nan expansion for the third month running, with the rate of<br \/>\ngrowth the fastest in just under a year. Meanwhile, France also saw activity increase for the first time in 10 months.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">In looking at the details, price pressures remain a key component in tying the data to the ECB outlook.\u00a0Inflationary pressures intensified in September, with both<br \/>\ninput costs and output prices increasing at the sharpest<br \/>\nrates in four months.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">\n<p style=\"text-align: justify\" class=\"text-align-justify\">The latest rise in input costs was faster than the average for<br \/>\nthe year-to-date, but remained softer than the recent peak<br \/>\nseen in May. Similarly,<br \/>\noutput prices increased at sharper rates in both monitored<br \/>\nsectors, as well as across Germany, France and the rest of<br \/>\nthe Eurozone as a whole.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The more resilient economic growth and\u00a0rising prices will likely strengthen the case for the ECB to raise interest rates again sooner rather than later. And if anything else, it puts a rate hike in October very much on the table.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">That combination is particularly important for the ECB because stronger activity gives policymakers more room to respond to inflation without having to worry quite as much about choking off an already weak economy.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The market pricing now shows the probability of a 25 bps rate hike in October to be at around 48%, up from roughly 45% before the PMI data before today.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">\n<p>                            This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Eurozone September flash services PMI 53.0 vs 51.5 expected Prior 51.6 Eurozone September flash manufacturing PMI 52.7 vs 52.6 expected Prior 52.7 Eurozone September flash composite PMI 53.1 vs 51.7 expected Prior&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-438628","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/438628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=438628"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/438628\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=438628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=438628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=438628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}