At 16 months high, business activity in the eurozone in September climbed, but new orders remained stagnant after the temporary rise of August, raising concerns about the dynamics of bloc’s economic growth rate.

In particular, the complex index of Eurozone (PMI) responsible supplies (PMI) compiled by S&P Global, increased to 51.2 points in September from 51.0 points in August, according to the preliminary measure, marking the ninth consecutive month of growth.

Reuters poll economists expected the index slightly lower at 51.1 points.

“The eurozone remains on a growth track. However, we are far from a substantial dynamic, “said Cyrus de la Rubia, lead economist at Hamburg Commercial Bank.

The index that measures the complex new entrepreneurship – so demand – fell to the balance of 50.0 points from 50.3 points previously.

It is recalled that measurements of more than 50 points indicate growth, while downstream measurements.

It was the service sector that led to overall growth, with the sector PMI rising to 51.4 points from 50.5 points in August. This is the highest measurement of the index for nine months and much higher than the estimates of economists who did not expect a change in the index.

On the contrary, the processing sector lost part of its potential, with the sector index falling to 49.5 points from the 50.7 points in August.

The research also highlighted a sharp divergence between the two largest block economies. Germany has recorded strong growth, with activity expanding at the fastest pace since May 2023, while in France the business has shrunk for 13 consecutive month and even at the fastest pace than April.

The overall employment remained stagnant in September, ending the semester of job creation.

Finally, inflationary pressures were diminished in September, as both input costs and production prices increased at a slower rate.

The cost of manufacturing in the manufacturing sector has been reduced for the first time in three months, while service companies reported a high, albeit milder, inflation rate and raised their prices at the weaker pace since May.

“Cost inflation in the service sector, which the European Central Bank is closely monitoring, has been slightly reduced, but remains unusually high given the fragile economic environment,” the report said.