Eurozone Manufacturing PMI on the Rise

The Eurozone Manufacturing Purchasing Managers Index (PMI) experienced a notable increase in April, climbing to 49 from 48.6 in March, marking a 32-month high, according to a joint report by S&P Global and Hamburg Commercial Bank (HCOB).

Output Index Hits New Heights

Further bolstering the sector's outlook, the Manufacturing PMI Output Index reached a 37-month high, escalating from 50.5 in March to 51.5 in April. Greece and Ireland emerged as the top performers in the national PMI survey data for April.

Challenges and Opportunities Ahead

Despite the positive trends, employment levels saw a contraction at faster rates, and confidence levels were reported as the weakest so far in 2025. HCOB Chief Economist Cyrus de la Rubia highlighted the production pick-up in Germany and France, with Italy making strides towards expansion territory.

Profit Margins Expand Amidst Rising Competition

Manufacturers benefited from expanding profit margins in April, thanks to falling purchasing prices and rising selling prices at the fastest pace in two years. However, de la Rubia cautioned that this trend may not sustain, citing potential impacts from US tariff policies and increased competition from Chinese goods in the EU market.