The S&P Global Eurozone Manufacturing PMI rose to 52.8 in August from 51.9 in July, beating market expectations of 51.8 and signaling the fastest expansion in manufacturing activity in four years. Growth was concentrated in Germany, where output posted its strongest increase since January 2022 after a period of underperformance relative to other Eurozone economies. This improvement reflects some momentum from the government’s latest fiscal stimulus efforts.
Stronger inflows of new orders supported a modest rise in manufacturing employment, bringing an end to a three-year run of monthly job cuts. Purchasing activity also edged higher. At the same time, input cost inflation eased to its lowest level since before the escalation of conflict in the Middle East in February, resulting in a more moderate increase in output prices. Overall, business confidence in the manufacturing sector climbed to a six-month high.
