Eurozone Manufacturing PMI Hits 52-month High in September Amid Rising Capital Goods Demand

05:52 AM EDT, 10/01/2026 (MT Newswires) -- The euro area's manufacturing sector remained in expansion territory in September on the back of higher output levels and new orders, as companies boost capacity to meet increased demand, particularly for capital goods. The S&P Global Eurozone Manufacturing PMI stood at a 52-month high of 52.9 in September, above the August figure and flash estimate of 52.7, according to final data from S&P Global published Thursday. Manufacturers across the euro area logged an increase in production and new orders, marking the strongest pace of growth since early 2022, boosted by supportive export conditions. Overseas demand for new orders increased for the second straight month, denoting the first sustained growth over four-and-a-half years. "Order book growth is also now sufficiently strong to encourage factories to take on additional staff, ending the continual loss of factory jobs that had been reported over the prior three years," said S&P Global Market Intelligence Chief Business Economist Chris Williamson. "The upturn is being driven by rising demand for investment goods such as machinery and equipment, with output of these capital goods growing in September at a rate not seen since the post-COVID rebound five years ago. This reflects higher demand for AI and defence-related equipment in particular." All eight eurozone countries covered by the survey reported growth in their manufacturing sectors, marking the first time all of their PMI readings stood above the neutral 50 threshold in more than four years. The Netherlands saw the strongest expansion, whereas Germany and Greece logged "solid" growth. Meanwhile, Spain, France and Italy posted "more modest" rates of increase. Manufacturers' optimism on output growth over the next 12 months improved in September despite rising inflationary pressures across the sector, with business confidence climbing to a seven-month high. "Demand for consumer goods continues to fall, however, with the increased cost of living acting as a drag on household spending. It's therefore worrying to see both input costs and selling prices rising at increased rates again in September, which will fuel speculation about additional rate hikes from the [European Central Bank]," Williamson noted.