Eurozone, Germany Business Activity Hits Multi-month Highs

Business activity in the eurozone reached its highest level in 17 months in October, driven largely by strong performance in Germany, whose private sector saw its fastest growth in nearly two and a half years. The composite Purchasing Managers' Index (PMI) for the eurozone rose to 52.2, marking ten consecutive months of expansion and surpassing expectations. Services led this growth with a PMI of 52.6, the highest in 14 months, while manufacturing showed modest improvement. Germany's composite PMI surged to 53.8, buoyed by a sharp increase in services activity, though its manufacturing sector remained slightly below the growth threshold. Despite robust activity, business outlooks remain cautious due to concerns over domestic economic weakness, geopolitical tensions, and high costs. Employment trends diverged, with services sector jobs increasing while manufacturing job cuts accelerated in the eurozone overall.