Eurozone PMI Manufacturing was finalized at 50.8 in February, rising from January’s 49.5 and marking a 44-month high. The move above also the 50 threshold signals a return to expansion for the bloc’s factory sector.
The rebound appears increasingly broad-based. Greece (54.4) and Ireland (53.1) led growth, while Germany climbed to 50.9, its highest level in nearly four years and back in expansion for the first time in three-and-a-half years. Netherlands, Italy, France and Spain also hovered around or above the growth line, with Austria the only country still below 50. Among the major economies, Germany is now showing the fastest improvement in manufacturing conditions.
According to Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, the data point to a “broad-based recovery”, with six of eight surveyed countries now in growth territory. However, input price pressures accelerated for a fourth consecutive month and picked up sharply in February. While companies were able to pass on part of these increases, margins likely remained under strain.
Encouragingly, firms expressed growing optimism about future sales and production. Expectations for output improved further compared to January, suggesting confidence that demand conditions will strengthen in coming months.
