The flash eurozone manufacturing Purchasing Managers’ Index (PMI) increased to 50.8 in February, up from 49.5 in January. This is the highest level since June 2022, Euronews reported, citing S&P Global and Hamburg Commercial Bank.
Furthermore, the broader composite PMI, which covers both manufacturing and services, rose to 51.9 from 51.3. This shows that private-sector activity is still growing at a moderate pace. Services remained in growth territory at 51.8, but this was slightly below expectations.
Economists said this improvement could signal a change after almost two years in which manufacturing held back eurozone growth due to weak global demand, high energy costs, and tighter financial conditions. New orders grew again after three months of decline, which suggests output might keep rising in the next few months.
Germany led the rebound, with its manufacturing PMI rising to 50.7 from 49.1. This ended more than three years of contraction. New orders grew strongly, including from overseas, and order backlogs increased for the first time since mid-2022. Stronger foreign demand and higher public spending were the main reasons for this growth.
In contrast, France was nearly stagnant. Its composite PMI was 49.9, with manufacturing falling back into contraction and services activity also declining. Weak demand, especially for exports, continued to hold back growth.
The survey also showed new cost pressures, mainly in manufacturing. Input prices rose at the fastest rate since late 2022, partly because of higher energy prices, especially in Germany. Companies passed some of these costs to customers, but overall, selling price inflation fell slightly.
