Eurozone Manufacturing Sector Shows Signs of Recovery in February

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

Production declines were at their softest in nine months, and new orders fell at the weakest rate in nearly three years. Despite accelerated job cuts and intensified cost pressures, businesses remain optimistic about the outlook for the next 12 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.