The eurozone’s private-sector economy strengthened again in November, delivering its fastest pace of growth since mid-2023, according to the latest HCOB PMI figures published on Wednesday.
The HCOB Eurozone Composite PMI Output Index rose to 52.8 in November from 52.5 the month before, extending its upward streak to six consecutive months and reaching its highest reading since May 2023. The index also moved above its long-term average of 52.4.
Both major sectors contributed to the improvement, though services remained the clear outperformer. The Services PMI Business Activity Index increased to 53.6 from 53.0 in October, marking a 30-month high. Manufacturing, by contrast, saw its output growth cool to its slowest pace in nine months.
All five countries with composite data posted expansion. Ireland delivered its strongest performance in three and a half years, while Spain delivered the second-fastest growth in the group despite easing from October’s 2025 peak. Italy registered its best output expansion since April 2023, and France returned to growth for the first time in 15 months. Germany, meanwhile, continued to grow but at a more moderate rate compared with October’s 29-month high.
New business increased for the fourth month running, matching October’s two-and-a-half-year peak. This rise came entirely from services, as manufacturers saw a slight drop in new orders.
Employment edged higher for the eighth time in nine months, though the pace of job creation was minimal. Service-sector firms continued to hire, while factory employment recorded its steepest decline since April.
Business sentiment improved across both areas of the economy, though optimism remained below longer-term norms. Input cost pressures intensified, reaching an eight-month high, driven by rising service-sector expenses and a renewed uptick in manufacturers’ purchase prices. Conversely, output-price inflation eased to its lowest level in six months.
Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented: “The service sector in the eurozone is showing clear signs of recovery. The strong performance in the service sector was even enough to more than offset the weakness in the manufacturing sector, meaning that economic output in the eurozone grew slightly faster in November than in the previous month.”
He added that the recovery has gained breadth, with the services sector expanding for six consecutive months across much of the region. Looking ahead, he expects Germany’s expansionary fiscal stance and Spain’s ongoing strong growth to provide tailwinds for the eurozone economy over the next year.
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