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Eurozone manufacturing PMI rises to a 51-month high in August
The PMI Manufacturing price sub-indices eased, with input cost inflation slowing to its weakest rate in six months, though logistics strains pushed supplier delivery times higher.
Eurozone manufacturing activity strengthened further in August, pushing the PMI Manufacturing reading up from 51.9 to 52.7, its highest level in 51 months, according to Action Forex. The gain reflected broad improvement across demand, including new factory orders rising at the fastest pace since early 2022.
Manufacturing output also accelerated, with PMI Manufacturing Output increasing from 52.9 to 53.3, a 54-month high. Export demand improved as new export business expanded for only the second time in four-and-a-half years, while Germany recorded its strongest growth in more than four years and France contributed to the broader pickup.
The survey suggested recovery is still uneven. Output growth accelerated for a third straight month, employment was broadly unchanged after more than three years of continuous declines, and business confidence strengthened for a fourth consecutive month to above its long-term average, but Italy slipped back into contraction and Spain remained below 50.
Price pressures continued to cool even as supply disruptions persisted. Input cost inflation slowed to its weakest rate in six months and output price inflation softened, though both stayed above pre-Middle East war levels, while supplier delivery times lengthened sharply again, highlighting ongoing logistics strain.