FX.co ★ Eurozone Manufacturing PMI Slips Back Into Contraction

The HCOB Eurozone Manufacturing PMI declined to 49.5 in September 2025, marking a decrease from August's 38-month peak of 50.7, and falling short of market predictions of 50.7, according to a preliminary estimate. This reading highlights a renewed contraction in the sector, primarily attributed to the steepest reduction in new orders since February. While output growth had surged to a three-and-a-half-year high in August, it tapered off to a minimal increase. Meanwhile, employment continued its downward trajectory, continuing the job-reduction trend initiated in June 2023. Regarding pricing dynamics, input costs fell for the first time in three months, alongside a continued decline in output charges. Moreover, business sentiment weakened, reaching its lowest point this year.