Eurozone PMI hits 15-month high as manufacturing returns to growth
By Benjamin Chiou
Date: Thursday 21 Aug 2025
(Sharecast News) - Private sector growth across the eurozone picked up to its highest level in 15 months, as a slowdown in the services sector was offset by a surge in activity in manufacturing.
The S&P Global and Hamburg Commercial Bank (HCOB) composite purchasing managers' index unexpectedly rose to 51.1 in August, up from 50.9 in July, helped by a renewed expansion in new business.
The marked the strongest rate of expansion - defined as any figure above 50 - since May 2024 and well ahead of the consensus estimate for a slowdown to 50.7.
Companies increased their staffing levels for the sixth straight month, though inflationary pressures also picked up with both input costs and output prices increasing at sharper rates.
The service-sector PMI showed growth for the third month running but still fell to 50.7 from 51.0.
However, the manufacturing PMI registered its first return to growth in more than three years, rising to 50.5 from 49.8. The manufacturing PMI output index in particular jumped to a 41-month high of 52.3 from 50.6, with strong growth seen in German and signs of stabilisation in France, where conditions have been tough over the summer.
"Things are getting better," said Cyrus de la Rubia, chief economist at HCOB. "Despite headwinds like U.S. tariffs and general uncertainty, businesses across the eurozone seem to be coping reasonably well. The EU Single Market is likely playing a helpful role here, especially since most export and tourism revenues are generated within the EU."
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