The HCOB Eurozone Services PMI climbed to 51.4 in September 2025, surpassing market expectations and up from 50.5 in August, according to flash estimates. This marked the strongest expansion in business activity so far this year, supported by a modest improvement in new orders. Employment also continued to grow, extending the sector’s long-running trend of job creation, although the pace eased to a seven-month low. Firms made headway in managing workloads, with backlogs of outstanding business reduced at the quickest rate in three months. On the price front, input cost inflation remained sharp but moderated compared with August, while output charges rose at a more measured pace, pointing to some easing of inflationary pressures. Business confidence held broadly steady from the previous month, with firms maintaining a constructive outlook for the months ahead despite softer external demand.