Eurozone Manufacturing Sector Shows Signs of Recovery

In February, the Eurozone's manufacturing sector, although still in contraction, showed signs of improvement. According to the latest report by S&P Global and the Hamburg Commercial Bank (HCOB), the manufacturing Purchasing Managers' Index (PMI) rose to 47.6 from 46.6 in January, marking its highest point in two years.

Production declined at the softest pace in nine months, and new orders fell at the weakest rate in almost three years. Despite job cuts accelerating and cost pressures intensifying, businesses remained optimistic about the future, looking forward to potential growth in the coming months.

"After almost three years of recession, we could see a bit of growth in the coming months. A quick formation of a government in Germany, political stability in France, and a deal with the US on key tariff issues would definitely help," said HCOB Chief Economist Cyrus de la Rubia.