Eurozone business activity growth hits 16-month high

FRANKFURT

Business activity in the eurozone rose in September, with the pace of expansion hitting a 16-month high, a key survey showed on Tuesday.

S&P Global's purchasing managers' index (PMI) — a key gauge of the overall health of the economy — registered a figure of 51.2 this month, up from 51 in August. It is the ninth consecutive month of increases, S&P said in a statement.

Any reading above 50 indicates growth, while a figure below 50 shows contraction.

"The eurozone is still on a growth path," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "That said, we're still a long way from seeing any real momentum."

Europe's biggest economy Germany was a key driver of growth this month, the survey found, posting a solid increase in output.

The situation, however, appeared more bleak in France, where activity decreased for the thirteenth consecutive month, the survey found.

"The outlook for manufacturing is looking a bit cloudy. Production is still growing, but the pace is being dragged down by France, where the government shake-up in early September likely threw a wrench into companies' production plans," de la Rubia said.

The resignation this month of Francois Bayrou as premier threw France into fresh political turmoil as President Emmanuel Macron faces rising public anger.

There was continued increasing output in the rest of the single currency area, albeit the survey found the rate of expansion moderated.