FX.co ★ Eurozone Manufacturing PMI Revised Higher

The HCOB Eurozone Manufacturing PMI experienced a slight increase, reaching 49 in April 2025, up from 48.6 in the prior month. This indicates the slowest rate of contraction in manufacturing activities seen in more than two years and marks an upward revision from the preliminary estimate of 48.7. Despite ongoing contractions in new orders, primarily driven by a significant downturn in export orders due to the marked appreciation of the euro and unfavorable macroeconomic conditions amid US-China trade war concerns, there are some positive indicators. The reduction in backlogs and a proximate stabilization in demand prompted factories to enhance their output, achieving the highest levels in three years. On the employment aspect, uncertainties related to tariffs from the US compelled companies to scale back hiring and reduce their workforce. Regarding pricing, quicker lead times aligned with the first decrease in input costs since November of the previous year, although output charges saw their steepest increase in two years.