Overview
- The S&P Global flash composite PMI rose to 51.2 from 48.5, signaling a return to private-sector growth on Sept. 23.
- The pickup was driven by services, with the flash services PMI at 51.4, its highest reading in ten months while manufacturing output remained only marginally positive.
- Firms reported the fastest rises in input costs and selling prices since May, citing higher fuel, energy, metals and component prices as the main drivers.
- Companies cut staff for a fifth consecutive month as business confidence slipped to its weakest level since May despite a small rise in new orders and softer export weakness.
- Market-implied odds for a 25 basis-point ECB rate hike in October sit around 45–47% after the readings and analysts say persistent private-sector inflation could complicate the bank’s policy choice.