Eurozone Manufacturing PMI Hits Highest Since Mid-2022

The HCOB Eurozone Manufacturing PMI was confirmed at 50.8 in February 2026, up from January’s 49.5, marking the strongest improvement in operating conditions for euro area factories since June 2022. Manufacturing output rose again, and new orders increased at the fastest pace since April 2022, while exports declined at the slowest rate in three months. Despite the gains, employment continued to fall, and backlog reductions moderated. Purchasing activity nearly stabilized, with the pace of decline slowing for a second consecutive month. On the price front, input cost inflation surged to a 38-month high, while output prices rose for a second consecutive month, the first back-to-back increase in nearly three years, with the latest rise the sharpest since March 2023. Business confidence climbed to a four-year high, signaling optimism for the months ahead.

The HCOB Flash Eurozone Manufacturing PMI increased to 50.8 in February 2026 from 49.5 in January, beating forecasts of 50. The reading pointed to the strongest improvement in manufacturing business conditions since June 2022, with the rise in production being the sharpest since August 2025 and new orders increasing for the first time in six months, and at the fastest pace in almost four years. On the other hand, manufacturing staffing levels continued to fall, input costs rose at the fastest pace since December 2022 and selling prices also accelerated. Finally, business sentiment reached a four-year high. "Overall, it seems that the manufacturing sector is on a more stable footing and could contribute to overall growth this year instead of being a drag for the economy", Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said

The HCOB Eurozone Manufacturing PMI rose to 49.5 in January 2026, broadly in line with the preliminary estimate of 49.4 and up from December’s nine-month low of 48.8. Despite the improvement, the reading still signaled a third consecutive month of contraction, pointing to a downturn that remained only marginal overall. New orders fell for a third straight month, while output returned to growth after recording its first decline in ten months in December. At the country level, manufacturing conditions improved in Greece, France, and the Netherlands, but deteriorated further in Germany, Italy, Spain, and Austria. Cost-cutting remained a theme at the start of 2026, as firms reduced employment, purchasing activity, and inventories in January. On the inflation side, input cost pressures accelerated to a three-year high, while output prices were largely unchanged. Looking ahead, business confidence strengthened, with expectations reaching their highest level since February 2022.