Eurozone Manufacturing PMI Hits Near Four-Year High

The Eurozone’s Manufacturing PMI climbed to 52.2 in April 2026 from 51.6 in March, surpassing expectations of 50.8 and marking the strongest improvement in business conditions since May 2022. Production growth hit its fastest pace since August 2025, while new orders expanded at the quickest rate in four years, boosted by the first rise in export demand since February 2022. However, some of this growth stemmed from customers stockpiling amid fears of price hikes and supply shortages due to the Middle East conflict. Employment in the sector declined, though input buying rose at the fastest pace since May 2022. Meanwhile, inflationary pressures intensified, and business confidence fell to a 17-month low, signaling caution ahead.

The S&P Global Eurozone Manufacturing PMI rose to 51.6 in March 2026, up from both the preliminary estimate of 51.4 and February’s 50.8. This marks the strongest expansion in the sector since June 2022, amid a considerable supply-side disruption as the war in the Middle East disrupted global logistics markets. Output growth hit a seven-month high, while new orders matched February’s 46-month record, though the increase remained modest. New export orders stabilized, ending an eight-month decline, and backlogs of work expanded—the first sign of capacity pressures since mid-2022. However, employment continued to decline. On pricing, input cost inflation reached its highest level since October 2022, and factory gate prices rose at the fastest pace in over three years. Meanwhile, business confidence weakened in March, weighed down by ongoing Middle East tensions.

The S&P Global Eurozone Manufacturing PMI rose to 51.4 in March 2026 from 50.8 in February, better than forecasts of 49.4, flash estimates showed. The data signaled an acceleration in manufacturing activity compared with February, marking the strongest growth in 45 months. New orders continued to rise, and export orders showed signs of stabilization. Meanwhile, the reduction in employment remained modest, but it was the most pronounced in three months. Purchasing activity expanded for the first time in 44 months, ending a long sequence of decline. However, manufacturers reported the most significant lengthening of suppliers’ delivery times in over three and a half years, reflecting supply chain disruptions caused by the Iran war. As a result, stocks of inputs and finished goods continued to fall, and at a faster pace than in the previous month. Inflationary pressures intensified markedly, with both input costs and prices charged accelerating. Lastly, business confidence weakened.