Eurozone manufacturing PMI hit 52.9 in September, the first time all eight surveyed member states have expanded at once in over four years. Inflation accelerated at the same time, and the French-German bond spread widened to levels last seen in the 2011-2012 debt crisis.
S&P Global’s euro-area factory gauge hit a 52-month high even as input and output price inflation accelerated for the first time since May, complicating the ECB’s next move ahead of Friday’s HICP flash. Source
The eurozone's manufacturing sector just posted its best month since Russia's invasion of Ukraine blew up the continent's energy bill. All eight surveyed member states are now expanding at once, the first time that has happened in more than four years. Normally that is unambiguous good news. This time it arrives bundled with an inflation reacceleration and a French bond market pricing stress not seen since the eurozone's last existential crisis. The European Central Bank (ECB) now has two problems pulling policy in the same direction, for very different reasons.
