Composite purchasing managers’ indices across the euro area suggested an acceleration in business activity for October, marking a 2.5-year high. New orders improved as price pressures eased, with manufacturing and services jointly contributing to the upturn. Economists interpreted the print as evidence that disinflation is enabling real income recovery and stabilizing demand. While the trajectory appears constructive, sensitivity to energy costs and external growth remains a risk. Markets weighed whether momentum could sustain without renewed policy support from national budgets.