Eurozone PMI data signal manufacturing revival in August 2025

The flash PMI survey data for August 2025 point to a rebound in new orders, marking the end of a contraction streak that began in June 2024. This renewed growth has driven business activity to its highest level in 15 months. Firms also expanded their workforce for the sixth consecutive month. Meanwhile, inflationary pressures intensified, with both input costs and output prices rising at a faster pace.

These are the key findings from the latest Purchasing Managers’ Index (PMI) survey conducted by Hamburg Commercial Bank in collaboration with S&P Global.

The eurozone manufacturing PMI rose to 50.5 in August, up from 49.8 in July and above analysts' expectations of 49.5. This reading surpasses the critical 50-point threshold, signaling a return to expansion in the sector.

However, the services sector showed signs of slowing. The services PMI fell to 50.7 from 51.0, slightly missing the forecast of 50.8. As a result, the composite PMI — which combines manufacturing and services — edged up to 51.1 from 50.9, exceeding expectations of 50.7.

Among the eurozone’s largest economies, Germany posted a notable improvement in its manufacturing PMI, which climbed to 49.9 from 49.1, beating the consensus estimate of 48.8. However, the German services PMI slipped to 50.1 from 50.6, falling short of the expected 50.4.

In France, both sectors showed signs of recovery. The manufacturing PMI rose to 49.9 from 48.2, well above the expected 48.2, while the services PMI improved to 49.7 from 48.5, also beating forecasts.