Eurozone Manufacturing Growth Strengthens to Highest Since April

2026-08-03 08:28 By Joana Ferreira 1 min. read

The S&P Global Eurozone Manufacturing PMI rose to 51.9 in July 2026 from 51.4 in June, broadly matching the preliminary estimate of 52.0 and signaling the strongest improvement in factory conditions since April.

Manufacturing output expanded at its fastest pace since March 2022, supported by the completion of backlogged orders and a modest increase in new business.

However, demand remained subdued, with new orders rising only marginally and export orders declining again.

Backlogs of work fell for a third consecutive month, recording the sharpest depletion since January, while manufacturers continued to cut jobs and reduce purchasing activity.

Cost pressures remained elevated but eased to a five-month low, allowing factory gate price inflation to soften to its weakest level since March.

Meanwhile, business confidence improved to its highest level since February, although it remained below its long-run average.



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Eurozone Manufacturing Growth Strengthens to Highest Since April
The S&P Global Eurozone Manufacturing PMI rose to 51.9 in July 2026 from 51.4 in June, broadly matching the preliminary estimate of 52.0 and signaling the strongest improvement in factory conditions since April. Manufacturing output expanded at its fastest pace since March 2022, supported by the completion of backlogged orders and a modest increase in new business. However, demand remained subdued, with new orders rising only marginally and export orders declining again. Backlogs of work fell for a third consecutive month, recording the sharpest depletion since January, while manufacturers continued to cut jobs and reduce purchasing activity. Cost pressures remained elevated but eased to a five-month low, allowing factory gate price inflation to soften to its weakest level since March. Meanwhile, business confidence improved to its highest level since February, although it remained below its long-run average.
2026-08-03
Eurozone Manufacturing Growth Picks Up Slightly
The S&P Global Eurozone Manufacturing PMI rose to 52.0 in July 2026 from 51.4 in June, above expectations of 51.5, preliminary data showed. This also marked the steepest expansion in three months, supported by a stronger increase in output, as the manufacturing output index climbed to 53.0 from 51.7, marking the strongest pace since March 2022. Manufacturers kept purchasing activity broadly unchanged, while easing supply-chain disruptions allowed firms to increase input inventories for the first time in three-and-a-half years. However, manufacturers continued to reduce staffing levels. On the price front, manufacturing input cost inflation slowed in July, while output price inflation also eased, although cost pressures remained elevated. Looking ahead, manufacturers' confidence regarding future output improved slightly.
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Eurozone Manufacturing Expansion Slows in June
The S&P Global Eurozone Manufacturing PMI declined to 51.4 in June 2026 from 51.6 in May, broadly aligning with the preliminary estimate of 51.3. Despite the slight slowdown, the sector has now remained in expansion territory for a fifth consecutive month, rounding off the strongest calendar quarter for euro area manufacturing production since the first months of 2022. This growth helps counterbalance the recent downturn observed in the services economy. In June, output growth picked up from May’s four-month low, although new orders saw only a marginal increase and employment continued to fall. Supplier capacity remained under pressure due to the ongoing Middle East conflict. Meanwhile, both input and output cost inflation moderated from multi-year highs, and business confidence climbed to a four-month high.
2026-07-01