Eurozone manufacturing showed signs of improvement in January 2025, with the HCOB PMI revised upward to 46.6, exceeding the initial estimate of 46.1 and up from 45.1 in December.
Eurozone manufacturing contraction eases
Although still indicating contraction, this marked the slowest rate of decline in manufacturing activity since May 2024. Both output and new orders contracted at their weakest pace since May. However, employment continued to decline, with a slight acceleration in job shedding. Input costs rose for the first time since August, but manufacturers held output prices steady, absorbing the increased costs.
Eurozone factory confidence soars
Looking forward, business confidence strengthened significantly, with growth expectations reaching their highest point since February 2022.
