Europe: Business Activity Reaches Its Highest Level in 3 Years
WHAT HAPPENED
Service activity in the eurozone rose from 52 to 53.1 points in September, its best level in three years. Above 50 means the sector is growing.
WHY IT MATTERS
Banks, hotels, restaurants, and stores are receiving more orders and hiring, even with higher energy costs. But this growth could keep prices elevated and lead the European Central Bank to raise rates, making mortgages and loans more expensive.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, the news shows a more resilient European economy: tourism, restaurants, and banks are gaining activity. The risk is that higher rates could make loans more expensive and reduce spending by families and businesses.
💬 TELL IT LIKE THIS
“Europe is growing despite the energy shock, but that same growth could keep rates and loans expensive.”