Eurozone business growth reaches 2026 high despite French economic contraction

In August 2026, business activity in the Eurozone expanded at its fastest rate of the year, driven by a surge in new orders and the first rise in export orders since February 2022. According to S&P Global, the composite PMI reached 52.1 points, exceeding the anticipated 51.7. Notably, the manufacturing PMI rose to 52.8, marking a four-year high, while the services sector remained stable at 51.7 points, defying analysts' expectations of a slowdown.

Conversely, France reported an unexpected contraction in its private sector as the composite PMI fell to 48.8, marking the eighth consecutive month of decline. This economic downturn coincides with a severe summer heatwave that caused 1,243 additional deaths between July 3 and July 22, following another 5,764 excess deaths recorded earlier in June. French health authorities state these mortality figures remain preliminary, with final data for the summer expected by October or November 2026.