The HCOB Flash Eurozone Manufacturing PMI rose to 50.8 in February 2026 from 49.5 in January, surpassing market expectations of 50. This reading signaled the strongest improvement in manufacturing business conditions since June 2022. Output expanded at the fastest rate since August 2025, while new orders increased for the first time in six months and at the quickest pace in nearly four years.
At the same time, manufacturing employment continued to decline. Input costs increased at their fastest rate since December 2022, and selling prices also accelerated. Nevertheless, business confidence climbed to a four-year high.
“Overall, it seems that the manufacturing sector is on a more stable footing and could contribute to overall growth this year instead of being a drag on the economy,” said Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.
