Eurozone August Composite PMI Preliminary Hits 9-Month High, Manufacturing Strong Rebound as Key Driver

Driven by demand in manufacturing (especially AI and defense sectors) and an export recovery, the eurozone's August composite PMI preliminary reading rose to 52.1. Despite the economy showing resilience, with Q3 GDP expected to grow 0.3% and improved employment conditions, inflation remains high at 2.9%, with price pressures only slightly easing. Meanwhile, divergences within the region's economy have widened and business confidence has weakened, adding uncertainty to the recovery outlook.