Financial News: Eurozone Manufacturing Growth Fastest Since 2022

Eurozone Manufacturing Growth Fastest Since 2022

09/01/2026 - 09:30:00 (RTTNews)

(RTTNews) - The euro area manufacturing sector expanded at the strongest pace since 2022 in August, driven by robust production and new orders, final data from S&P Global showed on Tuesday.

The manufacturing Purchasing Managers' Index hit a 51-month high of 52.7 in August from 51.9 in July. The reading was slightly down from the flash estimate of 52.8.

"The August PMI report provided the clearest signs yet that the eurozone's industrial economy has so far shaken off both the oil price shock and supply-related disruptions caused by the Middle East war," S&P Global Market Intelligence Senior Principal Economist Joe Hayes said.

Both factory output and incoming new orders increased at their fastest rates since early-2022, supporting renewed purchasing activity growth and a pick-up in business confidence.

Inflation continued its downward path, although rates of increase in both input costs and output prices were still above those seen immediately prior to the Middle East war, the survey showed.

A considerable contribution to the manufacturing growth stemmed from the Eurozone's largest economy, Germany, which registered the strongest production growth in over four-and-a-half years. At 54.3, the factory PMI hit a 51-month high, up from 52.2 in July. The flash reading was 54.1.

France also helped to lift the overall expansion in the euro area. There was a mild recovery with output rising for the first time since April. The factory PMI posted 51.1, up from 49.8 In July. The flash score was 51.5.

However, growth in Germany and France was somewhat offset by a renewed decline in Italy's goods-producing economy. Italian manufacturers reported the first contraction since the start of the year. The factory PMI hit 49.6, down from 51.3 in the previous month.

Spain also slipped into the contraction territory in August amid concurrent falls in output and new orders. The manufacturing PMI dropped unexpectedly to 49.5 from 50.2 in the previous month. The reading was forecast to rise to 50.4.

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