Euro zone firms struggle to keep up with surging demand in Sept - PMI

ll last month.

A PMI covering the bloc`s dominant service industry rose to 55.8 from 54.7, ahead of the preliminary reading of 55.6.

That increase came despite firms hiking prices at the second-fastest rate in over six years. The output price index was 51.8 last month, up from 51.3.

Euro zone inflation undershot expectations in September, Eurostat data showed last week, highlighting how price growth remains weak and supporting the European Central Bank`s case for only gradual removal of its extraordinary stimulus.

A Reuters poll of economists in September suggested the ECB will announce on Oct. 26 a six-month extension to its asset purchase programme but will cut how much it buys each month to 40 billion euros from January.

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