52.9: Eurozone industry grows at the fastest pace since 2022
WHAT HAPPENED
Eurozone industry grew for the third consecutive month. Its indicator reached 52.9 points in September, the highest since May 2022. Orders, exports, and production advanced, especially in machinery, chips, artificial intelligence, and defense.
WHY IT MATTERS
More orders can boost employment in factories and activity for transporters, suppliers, and logistics companies. But factories are also paying and charging more, which could raise prices of goods and complicate the fight against inflation in Spain and Italy.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, the data points to an improvement in the activity of European industrial companies and their suppliers. It also serves as a reminder that stronger growth can keep pressure on prices and affect the direction of interest rates.
💬 TELL IT LIKE THIS
“European industry is growing strongly again, but the same momentum that drives factories can also push prices.”