Eurozone manufacturing resumes downturn in September
By Benjamin Chiou
Date: Wednesday 01 Oct 2025
(Sharecast News) - Data from S&P Global and Hamburg Commercial Bank confirmed that the eurozone manufacturing sector resumed its downturn in September due to a fall in new order inflows and increased job losses.
The second reading of last month's manufacturing purchasing managers' index (PMI) was revised to 49.8, up from the flash estimate of 49.5 released last week but still below the 50-point mark which separates growth from decline.
This was down from 50.7 in August, which marked the first increase in manufacturing activity in more than three years.
Production volumes continued to expand in September, but the pace of growth slowed significantly from August's near three-and-a-half-year high.
Meanwhile, pre- and post-production inventories were reduced further as firms accelerated their cutbacks in purchasing activity.
While optimism remains that output will increase from the current level over the coming year, manufacturing sentiment was at its lowest mark since April.
"For the seventh month in a row, production in the Eurozone has ticked upwards compared to the previous month, but progress has been sluggish," said Cyrus de la Rubia, chief economist at HCOB.
"There is no clear sign that things are about to pick up speed anytime soon. Incoming orders dipped slightly and mostly flatlined through spring and summer. As a result, companies continued trimming staff and cutting down inventory levels in September."
Nevertheless, de la Rubia said the industrial sector was "holding up surprisingly well" given the considerable headwinds it is facing, including political uncertainty in France and Spain, the "rocky start" to Germany's new administration and US trade tariffs.
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