Improvement in Manufacturing Activity

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

Production and New Orders

Production declines have softened to the lowest rate in nine months, and new orders have fallen at the weakest rate in nearly three years. However, the sector faced accelerated job cuts and intensified cost pressures.

Future Outlook

Despite these challenges, businesses remain optimistic about the next 12 months. HCOB Chief Economist Cyrus de la Rubia suggests that political stability in France, a quick formation of a government in Germany, and a deal with the US on key tariff issues could further aid in the sector's recovery.