Country-level data showed a striking split. Six of the eight surveyed economies—led by Ireland at 52.8, Greece at 52.7, and the Netherlands at 51.8—remained in expansion. Italy and Austria also posted multi-year highs, pointing to broad stabilization beneath the surface. However, the aggregate picture remains weak because the region’s industrial heavyweights continue to contract. Germany fell to a nine-month low of 48.2, while France stayed at 47.8.
HCOB’s Cyrus de la Rubia emphasized that while most countries are improving, the downturn in the two largest economies overwhelms the progress elsewhere. France’s weakness reflects ongoing political uncertainty that has delayed investment decisions, whereas Germany is grappling with frustration over government direction and growing doubts about the country’s reform capacity.
Nevertheless, forward-looking sentiment improved across the bloc. Most firms expect production to rise over the next year, with Germany showing a gradual return of optimism and France shifting noticeably into positive territory. The improvement suggests that confidence may be stabilizing after a difficult year.
