The euro-zone services sector posted a modest improvement in activity during September, according to the latest Purchasing Managers’ Index (PMI) survey. The data showed a slight acceleration from August, reflecting a gradual recovery in key industries.
The services PMI increased as demand strengthened in travel, hospitality, and professional services. Firms also noted a small easing in input cost pressures, signaling early signs of cost stabilization.
Survey participants across different countries and firm sizes reported a rise in client enquiries and new orders, which helped lift business confidence across several euro-area economies.
Despite these gains, companies continued to face staffing shortages and high wage and operating costs, which could squeeze profit margins in the coming months.
Economists said the headline PMI still points to expansion, but not at a pace strong enough to significantly change the region’s growth outlook. They described the data as consistent with moderate, services-led growth rather than a sharp rebound.
Market analysts highlighted that services now play a central role in shaping the bloc’s economic direction, as industrial activity remains uneven. Policymakers are expected to closely watch such data when setting monetary policy.
Investment intentions differed across member states, with tourism-driven economies showing greater appetite for spending.
Overall, the PMI report suggests that the service sector remains a steady, reliable contributor to euro-area growth as the region enters the final quarter of the year.
