Eurozone Manufacturing Growth Slows Again

The S&P Global Eurozone Manufacturing PMI edged down to 51.3 in June 2026 from 51.6 in May, slightly below market expectations of 51.6, preliminary data showed. The sector remained in expansion for a fifth consecutive month, but growth slowed for a second month, as supply chain disruptions linked to the Middle East conflict still weighed on activity. The sector continued to benefit from inventory building as customers bought ahead of expected price rises and possible supply issues, supporting demand. New orders rebounded marginally. Meanwhile, employment continued to decline, and business sentiment remained weak. On the price front, input costs continued to rise rapidly, but the rate of inflation slowed. Selling prices also moderated, although less than input costs.

The S&P Global Eurozone Manufacturing PMI fell to 51.6 in May 2026, down from April’s near four-year high of 52.2 but slightly above the preliminary estimate of 51.4. While the sector expanded for a fourth consecutive month, growth is faltering under the strain of soaring prices and supply chain disruptions tied to the Middle East conflict. A notable outlier was the suppliers’ delivery times index, which, despite signaling the worst delays since June 2022, positively contributed to the headline PMI, as longer lead times historically correlate with higher manufacturing activity. However, new orders stagnated, production growth slowed, and input prices and output charges surged to four-year and three-and-a-half-year highs, respectively. Employment continued to decline, and business optimism remained subdued.

The S&P Global Eurozone Manufacturing PMI fell to 51.4 in May 2026 from 52.2 in April, missing market expectations of 51.8, preliminary data showed. The reading marked the softest expansion in private sector activity in three months, as new orders declined and the Middle East war-related demand boost from stock-building and efforts to preempt price hikes and supply shortages faded. Manufacturing employment also decreased solidly, while production continued to increase slightly, extending the current sequence of growth to five months, and purchasing activity rose for the third month running. On the price front, both input costs and output charges rose sharply. Finally, manufacturing sentiment improved slightly.