Eurozone Manufacturing Growth Strengthens to Highest Since April

The S&P Global Eurozone Manufacturing PMI reached a record high of 51.9 in July 2026, up from 51.4 in June, marking the strongest improvement in factory conditions since April. This surge in manufacturing output is attributed to the completion of backlogged orders and a slight uptick in new business. However, demand remains restrained, with new orders growing only slightly and export demand decreasing once more.

Backlogs of work have fallen for the third month in a row, the most significant decline since January. Simultaneously, manufacturers are downsizing their workforce and trimming purchasing activity. Cost pressures have eased, dropping to a five-month low, which has contributed to a softening of factory gate price inflation to its lowest level since March.

Despite these developments, business confidence has risen to its highest mark since February, although it remains below the industry's average over the long term.