Markit Flash euro zone PMI showed growth on last month’s figures at 54.1, up from 53.9 last month. This is the fastest pace of increase for four years.

The figures were driven by accelerating growth in both manufacturing and service.

Rob Dobson, senior economist at Markit said:

“The flash PMI suggests that the eurozone is still experiencing one of its best periods of economic growth and job creation during the past four years GDP growth is tracking close to 0.4 percent so far in the third quarter.”

Growth in Europe was led by Germany, but offset by disappointing job losses in France.

Dobson comments: “The key to getting France fully back on track would be a turnaround in manufacturing, with the sector still offsetting gains seen at French service providers”

Strong figures in Europe are in stark contrast with China’s PMI released, which fuelled fears of a crisis in the world’s second biggest economy after showing a contraction.