FX.co ★ Euro Area Manufacturing PMI Highest in 26 Months

The HCOB Eurozone Manufacturing PMI rose to 48.7 in March 2025, marking its highest level in over two years, up from February's 47.6 and surpassing expectations of 48.2, according to preliminary data. This uptick signals the first expansion in manufacturing output in two years and the quickest pace of growth since May 2022. However, new orders continued to fall, although the rate of job cuts in the industry showed signs of slowing. While input costs increased at a moderate pace, they recorded the most significant rise since last August. Meanwhile, output prices experienced an uptick for the first time in seven months. The indicators of recovery prompted a slower retreat in purchasing activity, marking the smallest decline in input buying since August 2022. Inventories of both raw materials and finished goods continued to decrease. In contrast, supplier delivery times improved for the second straight month, achieving their best performance in nine months. Despite these improvements, business confidence within the manufacturing sector exhibited signs of declining.