Eurozone Manufacturing Growth Remains Solid in October

The S&P Global Eurozone Manufacturing PMI edged down to 52.7 in October 2026, from September’s four-year high of 52.9, but came in slightly above the preliminary estimate of 52.4, signaling continued expansion in the manufacturing sector. Output growth slowed to a four-month low but remained solid overall. Total new business increased at a softer pace, while employment continued to increase and purchasing activity expanded at its fastest pace since May 2022. Manufacturers also stepped up stockpiling to the greatest extent in nearly four years, as supplier delivery times lengthened and input cost inflation accelerated. Input prices rose at their fastest pace since May, prompting manufacturers to raise selling prices sharply, although the pace of increase was broadly unchanged from September. Meanwhile, business confidence remained in positive territory but weakened further, falling below its long-run average.

The S&P Global Eurozone Manufacturing PMI edged down to 52.4 in October 2026, its lowest level in three months, from 52.9 in September and below market expectations of 52.7. Manufacturing employment declined slightly following two consecutive months of growth. However, input purchasing continued to expand, with the pace accelerating to its joint-fastest in nearly four-and-a-half years, matching the rate recorded in April amid precautionary stockpiling linked to the ongoing conflict in the Middle East. As a result, manufacturers’ stocks of purchases increased for the first time in almost four years. Meanwhile, supplier lead times lengthened significantly, marking the sharpest deterioration in four months. On the price front, input costs rose sharply in October, driven by higher energy, fuel, and transportation costs. The increase was the steepest since May and exceeded the year-to-date average.

The S&P Global Eurozone Manufacturing PMI rose to 52.9 in September 2026, the most since May 2022 and above preliminary estimates of 52.7. Demand improved notably, with new orders increasing at their fastest pace since March 2022, while export sales expanded for a second consecutive month, marking the first sustained rise in overseas orders in more than four and a half years. Rising demand also put pressure on factory capacity, with backlogs increasing for the first time since April and at the fastest pace in almost four and a half years. Employment edged higher, reversing a prolonged period of job losses, while manufacturers increased purchases of raw materials and intermediate goods at one of their fastest rates since May 2022. Supply delays persisted but eased to their least severe since February. Meanwhile, business confidence reached a seven-month high, although input and output price pressures accelerated.