Eurozone composite PMI hit a three-year high of 53.1 in September as producer prices rose 8.2% year on year, sharpening an ECB rift over further rate hikes before December's meeting, with Spain calling a snap election and Italy's fiscal position improving.
ECB chief economist Philip Lane urged a measured response to a second energy-price wave, arguing growth drags may limit how far rates need to rise even as services PMIs and producer prices re-accelerated. Source
The eurozone's composite PMI for September came in at 53.1, the strongest reading since April 2023 and confirmation of the expansion the flash estimate flagged two weeks ago. On paper, that is a good news story. Underneath it, the ECB's Governing Council is replaying an argument from 2011, and the two eurozone members everyone watches for political risk have swapped roles.
