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A poster advertises “Up To 50% discount” in Rome, Italy
Euro zone private businesses ended the third quarter with much stronger growth than predicted, bolstered by manufacturers, who had their best month since early 2011, a survey showed on Friday.
That growth, alongside rising inflationary pressures, is likely to increase expectations the European Central Bank will announce plans next month to reduce its monthly spending on quantitative easing.
IHS Markit’s euro zone Flash Composite Purchasing Managers’ Index for September, seen as a good guide to economic growth, bounced to 56.7 from August’s 55.7, comfortably above the 50 level that separates growth from contraction.
September’s reading was above all expectations in a Reuters poll, which had forecast a dip to 55.5.
“It was a super manufacturing performance. We are well- placed for a strong fourth quarter as well … in this broad-based upswing,” said Chris Williamson, chief business economist at IHS Markit.
Williamson said the PMI pointed to third-quarter growth of 0.7 percent, faster than the median forecast in a Reuters poll last week for 0.5 percent.