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The eurozone's manufacturing sector posted a second successive monthly increase in output during April. The rate of growth also quickened to its strongest in just over three years, providing further evidence of recovery in the currency union's industrial economy. New orders continued to fall, but there was a near-stabilization of demand as the rate of contraction slowed further. Export markets were the principal drag on sales performances, underlying survey data implied. Softer rates of contraction were also seen for employment, stocks and purchasing activity, but confidence was the weakest in 2025 so far. The HCOB Eurozone Manufacturing PMI, a measure of the overall health of eurozone factories compiled by S&P Global, increased for a fourth month running in April, posting a 32-month high of 49.0 (March: 48.6). Albeit still below the 50.0 threshold separating growth from contraction, the headline figure was indicative of a decline that was only marginal overall. At the country level, the latest survey data revealed that Greece had the best-performing manufacturing sector in April despite a slowdown since March. There were further signs of recovery in April. Following a renewed increase in production during March, the eurozone manufacturing sector posted a quicker expansion at the start of the second quarter. In fact, the upturn in output was the fastest in just over three years. Growth in output was achieved despite a further drop in the volume of incoming new business. Eurozone factories still demonstrated some reservation with regards to the outlook. Regarding employment, the latest survey data showed a preference among manufacturers to trim headcounts, in line with the trend seen for almost two years. Suppliers' delivery times shortened again in April, with the extent to which they improved the most marked in ten months. Quicker lead times coincided with the first reduction in input costs for eurozone factories since last November. Powered by Commodity Insights
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