The eurozone has seen a surge in business activity, with the pace of expansion reaching a 16-month high in September, according to a recent survey. The S&P Global purchasing managers’ index (PMI), a key indicator of the economy’s overall health, rose to 51.2 this month, up from 51 in August. This marks the ninth consecutive month of growth, as any reading above 50 signifies expansion, while a figure below 50 indicates contraction.

Germany, the eurozone’s largest economy, was a significant driver of growth, posting a solid increase in output. However, the situation in France was less optimistic, with activity decreasing for the thirteenth consecutive month. The French government’s shake-up in early September likely disrupted companies’ production plans, contributing to the decline. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noted that while the eurozone is still on a growth path, it is far from gaining real momentum.

The outlook for manufacturing in the eurozone is uncertain, with production growth slowing down due to the decline in France. The rest of the single currency area saw continued growth, although at a moderated rate. The recent resignation of Francois Bayrou as premier has thrown France into fresh political turmoil, with President Emmanuel Macron facing rising public anger.

The S&P Global survey provides a snapshot of the eurozone’s economic performance, highlighting the uneven growth across member states. The increase in Germany’s output is a positive sign, but the decline in France’s activity is a cause for concern. As the eurozone continues to navigate economic challenges, the PMI survey will be closely watched for indications of future growth or contraction. The current growth trend is a welcome sign, but it remains to be seen whether the eurozone can sustain this momentum in the coming months.