Eurozone Composite PMI Holds at 52.0 in August

Eurozone private-sector activity expanded at the same pace in August as in July, according to the latest Purchasing Managers’ Index data from S&P Global.

The S&P Global Eurozone Composite PMI Output Index remained unchanged at 52.0, matching July’s eight-month high. The index stayed above the 50.0 threshold separating expansion from contraction and was close to its long-term average of 52.3.

The Services PMI Business Activity Index declined slightly to 51.6 from 51.7 in July, reaching a two-month low.

Spain and Italy Lead Expansion

Southern eurozone economies contributed to the expansion, with Spain and Italy recording increases in economic activity. Germany posted its fastest rate of growth since March, while France recorded an eighth consecutive monthly contraction.

New orders increased at the same pace as in July, representing the joint-fastest improvement in demand since November 2025.

The eurozone private sector also recorded its first increase in new export orders in four and a half years, with the improvement driven by manufacturing.

Employment Increases for First Time in 2026

Employment across the eurozone private sector increased for the first time in 2026. Workforce numbers rose at a rate broadly in line with the survey average.

Companies continued to reduce outstanding workloads, although backlogs declined at a slower rate than in previous months.

Input cost inflation eased slightly in August, while the rate of increase in output prices was unchanged from July. Both measures remained above levels recorded before the outbreak of the Middle East war.

S&P Global Economist Comments on Third-Quarter Activity

Joe Hayes, Senior Principal Economist at S&P Global Market Intelligence, said: “August’s PMI data puts the euro area on track for a solid quarter of growth in Q3. Momentum in the industrial economy has picked up nicely and the service sector has shaken off the initial weakness seen after energy prices surged at the start of the Middle East war.”

The August PMI data were collected between August 10 and August 25, 2026.