Eurozone Purchasing Managers’ Index (PMI) readings for the latest month exceeded market expectations, with stronger activity in Germany helping drive a modest acceleration in the bloc’s growth trajectory. The composite PMI stood at [figure], above the consensus forecast of [figure] and at its highest level in [X] months. Manufacturing, which has been contracting for more than a year, showed signs of stabilisation, while services continued to expand at a solid pace. Germany’s composite PMI rose to [figure], its strongest reading in more than a year, as new orders and export demand improved. Analysts linked part of the resilience to the German government’s commitment to significantly increase defence spending, including infrastructure and equipment investments, which are beginning to support domestic suppliers and manufacturers. The stronger data could reduce pressure on the European Central Bank (ECB), the euro area’s central bank, to pursue aggressive interest-rate cuts while inflation remains above its 2% target. The euro strengthened and bond yields rose as markets adjusted their policy expectations. The recovery remains uneven, with mixed results in France, Italy and Spain, manufacturing still below its long-term average, and risks from trade tensions, energy-price volatility, implementation delays and supply-chain constraints. Further indicators will be needed to establish whether the Eurozone is emerging sustainably from the stagnation of the past year.