FX.co ★ Euro Area Manufacturing Sector Stabilizes in October

In October 2025, the HCOB Eurozone Manufacturing PMI increased to 50, up from 49.8 in the previous month, exceeding market predictions of 49.5, and indicating a steadying of the sector. Production saw an expansion for the eighth month in a row, with a slightly accelerated growth rate compared to September. Meanwhile, new orders have largely stabilized following a previous decline. However, employment contracted at its fastest rate in four months, and there was a modest reduction in backlogs. Input costs experienced a slight increase, prompting manufacturers to raise selling prices for the first time in six months. Although purchasing activity and input inventories were decreased again, the pace of reduction was slower. In contrast, finished goods inventories shrank at a quicker rate. Supplier delivery times lengthened significantly, marking the worst delays in three years, although these delays remain less severe than those experienced during the pandemic. Overall sentiment weakened, with manufacturers expressing reduced optimism about future output despite the stabilization observed in current activities.