The S&P Global Eurozone Manufacturing PMI rose to 51.9 in July 2026 from 51.4 in June, broadly in line with the preliminary estimate of 52.0 and marking the strongest improvement in factory conditions since April. Manufacturing output grew at its fastest rate since March 2022, driven by the completion of backlogged orders and a modest uptick in new business.
Overall demand, however, remained weak. New orders increased only slightly, and export orders declined once again. Backlogs of work fell for a third consecutive month, posting the steepest reduction since January, as manufacturers continued to cut jobs and scale back purchasing activity.
Cost pressures, while still elevated, eased to a five-month low, enabling factory gate price inflation to cool to its weakest pace since March. At the same time, business confidence strengthened to its highest level since February, though it remained below its long-run average.
