Euro zone business activity accelerated to its strongest pace this year in August, with the S&P Global Flash Euro zone Composite PMI Output Index rising to 52.1 from 52.0 in July and exceeding the Reuters poll forecast of 51.7. The reading, the highest since November, remained above 50, indicating growth. New orders increased at their fastest rate in 40 months, while export orders, including intra-euro zone trade, rose for the first time since Russia invaded Ukraine in February 2022. Manufacturing led the expansion, with its PMI reaching a more than four-year high of 52.8 and output growth hitting a 54-month high. Services activity held at 51.7 after July’s rebound. Employment increased for the first time this year, although price pressures remained historically high despite easing input-cost and output-price inflation. The data suggest resilience after the economy expanded 0.4% in the second quarter, but weaker business sentiment and persistent inflation support a hawkish stance from the European Central Bank, which a Reuters poll said would deliver its second rate hike of the year next month.