Eurozone manufacturing activity edged back into contraction in September, with the PMI finalized at 49.8, down from August’s 50.7. Output slowed as well, with the production index falling from 52.5 to 50.9, pointing to weaker factory momentum across the bloc.
Country data painted a mixed picture. The Netherlands stood out with a 38-month high of 53.7, while Ireland and Greece also held above 50. Spain remained in expansion at 51.5 but slowed to a three-month low. Germany, France, and Italy — the region’s largest economies — all stayed below 50, signaling their industrial recessions are easing but not yet over.
Cyrus de la Rubia of Hamburg Commercial Bank said the “stagnation observed in the manufacturing sector can also be viewed positively,” given headwinds from US tariffs, political uncertainty in France and Spain, and high energy costs. He noted the sector is “holding up surprisingly well,” though confidence remains lower than the decade average.
