Eurozone Ends Q3 With A Growth Spurt: IHS Markit

--Eurozone September Composite PMI At 56.7 From 55.7 In August

By Kieran Williams

     LONDON (MNI) - Eurozone aggregate output saw gains at the end of Q3, with

the final September print matching the initial flash estimates of 56.7 and

rising from the final August print of 55.7. At these levels output growth has

hit a four month high after a slow down in July.

Data from IHS Markit shows that the Eurozone Composite Purchasing Managers Index

(PMI) has been in expansionary territory for 51 months, and has averaged 56.0 in

Q3, down slightly from the Q2 average of 56.6. Both the services and

manufacturing sectors saw gains, though manufacturing again led the expansion

hitting the highest levels since April 2011.

According to the survey, growth was seen across all 'big four' European

economies. Germany reclaimed top spot in the growth rankings led by new export

business growth in the manufacturing sector, while growth in France hit the

highest levels since May 2011. Spain saw a pick up in growth from the seven

month low hit last month, while the pace of growth slowed slightly in Italy.

Price pressures rose during September, increases in input and output prices both

hit five month highs, while squeezes were also evident in large increases in

both backlogs of work and employment.

"The economy enters the fourth quarter with business energized by inflows of new

orders growing at the fastest rate for over six years and expectations of future

growth reviving after a summer lull. Growth is also becoming increasingly

broadbased, which should help make the upturn more sustainable as corporate

profits, labour markets and demand improve across the region" said Chris

Williamson, chief business economist at IHS Markit.

Williamson added that the survey points to Q3 Eurozone GDP growth of 0.7%.

Following the release Claus Vistesen, Chief Eurozone Economist at Pantheon

Macroeconomics, noted that while PMI surveys point to strong GDP growth, hard

data appears to be lagging slightly and says he expects indications of a

slowdown at today's Eurozone Retail Sales figures.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203 865 3809; email: kieran.williams@marketnews.com

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