Eurozone Economy Surges with Unexpected Growth Boost

The Eurozone's business activity unexpectedly surged in October, with new orders reaching their fastest rate in over two years. The HCOB Flash Eurozone Composite PMI rose to 52.2, highlighting expansion. Contrasting trends were observed between Germany's robust growth and France's decline amid political uncertainty.

The Eurozone's business sector experienced an unexpected boost in October as companies saw new orders arriving at the swiftest pace in over two years. This surprising increase suggests the bloc's economy gained momentum as it entered the final quarter of the year, according to a recent survey.

The HCOB Flash Eurozone Composite PMI, compiled by S&P Global, climbed to 52.2 in October from 51.2 in September, marking the tenth month of continuous expansion and reaching a 17-month peak, contrary to the anticipated decline to 51.0 noted in a Reuters poll. PMIs above 50.0 indicate activity growth.

While Germany's economic performance buoyed the euro with significant service sector growth, France's activity contracted faster than expected amid a volatile political landscape. In contrast, the UK saw potential recovery signs in manufacturing as inflation pressures eased, though cautious optimism remains ahead of the upcoming government budget.

(With inputs from agencies.)