Eurozone business activity surges despite France’s turmoil
European business activity expanded at its strongest rate in 17 months as October surveys showed growth accelerating across the currency bloc. The purchasing managers index climbed to 52.2 from 51.2 in September, reflecting output gains in most member states.
Germany posted solid production increases while France recorded its fourteenth straight month of declining activity amid political turmoil. Hamburg Commercial Bank economist Cyrus de la Rubia said French weakness undermines recovery efforts elsewhere because the nation purchases substantial goods and services from neighboring economies.
Nations outside the two largest economies achieved their fastest expansion in 30 months. Political deadlock has gripped France since snap elections left President Emmanuel Macron without a parliamentary majority, creating uncertainty about Prime Minister Sebastien Lecornu’s government and the 2026 budget.
