Euro zone factory growth at more than four-year high in August, PMI shows
EZU•Inflation outlook and policy expectations
Still, official data out on Tuesday is expected to show that inflation rose to 3.3% in August from 2.9%.
The European Central Bank is expected to raise interest rates again this month as high energy prices push inflation further from the bank's 2% target, and then keep policy unchanged through at least the middle of 2027, an August Reuters poll found.
Manufacturers' business confidence rose for a fourth consecutive month, with optimism about the 12-month outlook climbing above its long-term average.
(Reporting by Jonathan Cable; Editing by Hugh Lawson)
Orders, output and exports provide support
"The August PMI report provided the clearest signs yet that the euro zone's industrial economy has so far shaken off both the oil price shock and supply-related disruptions caused by the Middle East war. Stronger order book growth, in part owing to a recovery in export demand, should give this expansion legs," said Joe Hayes, senior principal economist at S&P Global Market Intelligence.
