FX.co ★ Eurozone Manufacturing PMI Signals Easing Downturn

The HCOB Eurozone Manufacturing PMI saw an increase in January 2026, reaching 49.4, up from December's 48.8 and exceeding market projections of 49.1, based on a preliminary estimate. This figure indicates a lessening of the downturn in manufacturing business conditions. Notably, production rebounded, bolstered by an uptick in new orders, after experiencing its first decline in ten months at the close of 2025. However, manufacturing employment saw a slight decline, as companies curtailed their purchasing activities at the most measured pace in six months. On the pricing side, input cost inflation surged to the highest level in three years, though selling prices continued to gradually decline. Business confidence notably improved, reaching its highest point in nearly four years.