The Eurozone's manufacturing sector faces continued challenges as the HCOB Eurozone Manufacturing Purchasing Managers' Index (PMI) slipped further in May, signalling intensified economic pressure. Marking another decline, the PMI dropped to 48.4, down from 49.0 in April 2025, as reported on May 22, 2025. This contraction deepens the concerns surrounding the region's industrial health.
This movement below the pivotal 50-mark—indicative of contraction—is attributed to persistent supply chain difficulties and inflationary pressures, which have continued to affect manufacturers throughout the Eurozone. Companies are confronting the dual forces of heightened costs and weakening demand, making a recovery outlook increasingly uncertain.
Although the PMI results underline the fragility of the manufacturing landscape, industry analysts suggest that efforts to stabilize the economy could turn the tide in the forthcoming periods. For now, stakeholders watch closely as the Eurozone navigates its path through prevailing economic headwinds.
