FX.co ★ Eurozone Manufacturing PMI Confirmed at 33-Month High

The HCOB Eurozone Manufacturing PMI stood at 49.4 in May 2025, rising from 49.0 in April. This indicates the slowest contraction in the manufacturing sector since August 2022. Notably, production has increased for the third month in a row, matching the fastest pace since March 2022. A significant development is the stabilization of new orders after nearly three years of decline, while backlog depletion rates have eased to their slowest since June 2022. On the downside, employment continued to decrease, but at the gentlest rate observed since September 2023. From a pricing perspective, input costs fell for the second consecutive month, marking the most rapid decline in 14 months, and output prices saw a reduction for the first time since February. Looking forward, business confidence has surged to its highest point in over three years.