Eurozone PMI Manufacturing was finalized at 48.8 in December, down from November’s 49.6 and marking a nine-month low. Regional divergence remained pronounced. Greece (52.9) and Ireland (52.2) stayed in expansion, while the Netherlands held just above 50 at 51.1. France surprised on the upside at 50.7. However, weakness in the core was decisive, with Germany (47.0) and Italy (47.9) both sliding deeper into contraction and Spain (49.6) slipping back below the 50 threshold after a long expansion run.
According to Hamburg Commercial Bank, the manufacturing downturn has persisted almost continuously since mid-2022. Chief Economist Cyrus de la Rubia said 2025 brought some easing in the downturn but failed to generate a sustainable growth trajectory. Looking ahead, he pointed to Germany’s planned stimulus and rising defence spending across Europe as potential lifelines for 2026.
Input prices rose for a second consecutive month despite falling energy prices, driven instead by sharp gains in industrial metals and lingering supply-chain frictions. With delivery times lengthening and pricing power limited, the outlook remains challenging, leaving fiscal support as a key hope for reviving Eurozone manufacturing momentum in 2026.
 and Ireland (52.2) stayed in expansion, while the Netherlands held just above 50 at 51.1. France surprised on the upside at 50.7. However, weakness in the core was decisive, with Germany (47.0) and Italy (47.9) both sliding deeper into contraction and Spain (49.6) slipping back below the 50 threshold after a long expansion run.){kind=link}