FX.co ★ Eurozone Manufacturing PMI at 34-Month High

The HCOB Eurozone Manufacturing PMI saw a slight increase to 40.5 in June 2025, up from 49.4 in the prior month. This adjustment, revised marginally from the preliminary estimate of 49.4, still falls short of the originally anticipated 49.8. This outcome marks the 35th consecutive month of contraction in the Eurozone manufacturing sector, yet indicates the most modest rate of decline in nearly three years, suggesting only a minor downturn in manufacturing conditions. New orders remained relatively stable, prompting companies to continue relying on their backlogs and boosting production levels for the fourth consecutive month. However, there was a slight reduction in staffing and purchasing levels. The decreased demand for inputs led to lower operational costs, resulting in decreased output charges for manufacturers. Looking ahead, business confidence was at its highest in over three years, indicating cautious optimism for future prospects.