Eurozone Manufacturing Activity Rises Most in 4 Years

The S&P Global Eurozone Manufacturing PMI rose to 52.8 in August from 51.9 in the previous month, surpassing market expectations of 51.8 to mark the fastest pace of expansion in manufacturing activity in four years. The manufacturing growth was centered around Germany, where production rose the most since January 2022 after underperforming that from its Eurozone partners, reflecting some traction to the push from the government to stimulate the economy with fresh spending. The rise in new orders drove manufacturing employment to increase slightly, ending a three-year streak of monthly job shedding. Likewise, purchasing activity increased slightly. In the meantime, input costs slowed to their weakest since before the start of the Middle East war in February, driving output charges to rise less. In the meantime, business confidence improved to a six-month high for manufacturing.

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.

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.