Eurozone Private Sector Logs Strongest Growth in 17 Months Led by Germany

The eurozone's private sector showed strong growth in October 2025, with the Composite Purchasing Managers’ Index (PMI) rising to 52.2, marking the fastest expansion since mid-2023 and defying expectations of a slowdown. This growth was broad-based, led primarily by services, while manufacturing edged into expansion territory for the first time since mid-2022. Germany was a key driver, with its private sector PMI hitting 53.8, the highest in nearly two and a half years, fueled by a surge in services activity and stabilization in manufacturing, although employment continues to decline. In contrast, France's private sector contracted for the 14th consecutive month, negatively impacting the overall eurozone outlook amid political uncertainties. Despite the positive momentum in Germany and the eurozone, businesses remain cautious due to concerns over demand, geopolitical risks, and inflationary pressures, with employment declines persisting across sectors. This mixed picture suggests that while the eurozone may be regaining economic traction, risks and uncertainties still temper expectations for sustained recovery.