Eurozone economy grows amid rising energy costs and industrial pressure

The Eurozone economy is showing unexpected resilience, with manufacturing and service sectors growing faster than analysts predicted. According to S&P Global, the PMI index rose to 53.1, marking the highest level since spring 2023. This growth is driven by a four-year high in new orders and strong intra-European exports. However, this economic strength may lead the European Central Bank to increase interest rates up to three times by June next year to manage inflation.

Simultaneously, heavy industry is facing severe pressure from soaring energy costs. In the Czech Republic, steel producers report that gas prices have nearly tripled since spring, largely due to Middle East tensions. Companies like Nová huť in Ostrava have seen monthly gas costs jump from 25 million to 75 million CZK. This surge threatens industrial competitiveness and may force some firms to limit production of low-margin products, such as certain types of concrete steel, to mitigate financial losses.