The HCOB Flash Eurozone Manufacturing PMI increased to 46.1 in January 2025, up from 45.1 in December and surpassing expectations of 45.3.
Euro area manufacturing downturn softens
This indicated the smallest contraction in the manufacturing sector in eight months, though output, new orders, and employment still declined. On the price front, manufacturing input costs rose for the first time in five months, while manufacturing optimism reached a seven-month high.
Analyst comment
Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted, "The manufacturing sector remains in recession, but the pace of decline has slowed. The sector continues to reduce staff and face falling new orders. However, companies are now more optimistic about the future, anticipating higher output a year from now. This could be attributed to the unexpected Trump effect or the belief that the worst is over after nearly two years of recession."
