AI spending boom lifts global factory activity in September

October 1, 2026 at 03:14 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Factory activity across Europe and Asia expanded in September, driven by strong demand for AI-related goods, according to S&P Global PMI surveys released Thursday. The eurozone manufacturing PMI rose to 52.9, its highest since May 2022, while South Korea and Taiwan posted sharp gains. The expansion came even as energy price shocks from the Iran war kept inflation elevated and pushed central banks toward rate hikes.

Key Facts

S&P Global's Eurozone Manufacturing PMI rose to 52.9 in September from 52.7 in August, its highest level since May 2022.
South Korea's factory activity grew in September at the biggest margin in four months, with export demand growing at the fastest pace in 15-1/2 years.
Taiwan's manufacturing PMI hit 56.7 in September, up from 54.7 in August, driven by AI-related demand.
Japan's S&P Global PMI declined in September to its weakest in six months as output and new orders slowed.
China's factory activity expanded in September as easing weather disruptions allowed factories to resume operations.

Eurozone Expansion

The eurozone manufacturing PMI rose to 52.9 in September from 52.7 in August, its highest level since May 2022. Growth was broad-based across the bloc, with the Netherlands leading the expansion. Germany, the region's largest economy, recorded solid growth while expansion was modest in France, Italy and Spain. Iain Simmons, economist at Oxford Economics, said the strength was concentrated in demand for capital goods, specifically AI and defence equipment, while consumer goods demand fell amid price pressure.

Asian Manufacturing Surge

South Korea saw factory activity grow in September at the biggest margin in four months, as export demand grew at the fastest pace in 15-1/2 years. Taiwan's PMI hit 56.7 in September, up from 54.7 in August, with new orders and production growth at the highest for around five-and-a-half years. Usamah Bhatti, economist at S&P Global Market Intelligence, linked the expansions to the combined strength of the semiconductor and automotive sectors. Japan's S&P Global PMI declined in September to its weakest in six months as output and new orders slowed, although new export orders rose for a ninth straight month due to robust demand from Asia and improved sales to the US. China's factory activity expanded in September as easing weather disruptions allowed factories to resume operations.