Euro-zone business activity at 15-month high despite tariffs

'Despite headwinds like US tariffs and general uncertainty, businesses across the euro zone seem to be coping reasonably well'

Shoppers in a retail street in Frankfurt, Germany, on Friday, Dec. 30, 2022. European stocks were on track to cap their worst annual performance since 2018, triggered by a slowing economy over the war in Ukraine and aggressive central bank tightening.

The euro area’s private sector grew at the quickest pace in 15 months as manufacturing exited a three-year downturn despite a deal locking in higher levies for exports to the US.

The Composite Purchasing Managers’ Index compiled by S&P Global rose to 51.1 in August from 50.9 in July, further above the 50 threshold separating expansion from contraction. Analysts had predicted a reading of 50.6.