Euro zone manufacturing activity expanded at its fastest pace in more than four years in September as stronger demand for investment goods drove new orders, output and hiring higher. S&P Global's Eurozone Manufacturing PMI rose to 52.9 from 52.7 in August, exceeding the preliminary 52.7 estimate and reaching its highest level since May 2022. Production rose to a 55-month high, while new orders grew at their fastest rate since early 2022 and export growth reached a more than four-and-a-half-year high. The Netherlands led the expansion, Germany recorded solid growth, and France, Italy and Spain posted more modest gains. Demand for AI- and defence-related machinery and equipment supported the recovery, but consumer-goods demand continued to weaken under cost-of-living pressure. Input and output price inflation accelerated, adding to concerns that inflation could rise to 3.6% in September and prompting markets to price three European Central Bank rate increases by mid-2027. Separate September surveys also showed stronger manufacturing activity in Sweden, South Korea and India, while Poland remained below the expansion threshold despite an improved reading.