The eurozone‘s manufacturing sector saw production levels in December 2025 fall for the first time since February, with new orders falling at the quickest pace for almost a year, the HCOB Eurozone Manufacturing PMI compiled by S&P Global has found.
The index stood at 48.8 in December, down from 49.6 in November, indicating a ‘sharper deterioration’ in factory operating conditions. The output index also fell, to 48.9, down from 50.4 the previous month and standing at a ten month low.
Market conditions varied significantly across the eurozone, with Germany reporting its ‘steepest deterioration’ in sector conditions since February 2024, and Italy and Spain both seeing their indices drop below the 50.0 ‘no-change’ level. France, however, ‘bucked the trend’ to report a 42-month high, with Greece and Ireland also remaining in positive territory.
Slowing demand
“Demand for manufactured products from the eurozone is slowing down again,” commented Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “Significantly fewer orders, declining order backlogs, and continued inventory reduction are the most obvious indicators of this. It is not surprising that companies are continuing to cut staff in this environment. Companies seem neither able nor willing to build momentum for the coming year, but are instead exercising caution, which is poison for the economy.
“The manufacturing sector has been in recession almost continuously since mid-2022. 2025 was shaping up to be the year when the economy in this sector could turn around. In fact, the downturn did ease considerably, but it did not manage to shift to a sustainable growth trajectory. For 2026, however, there is hope that Germany’s economic stimulus program and rising defence spending across Europe will breathe new life into the industry.
“Many companies obviously see it this way too, as confidence that production will be higher in a year’s time than it is today has risen again from an already high level.” Read more here.
Euro Zone Countries Ranked by Manufacturing PMI – December 2025
| Country | Manufacturing PMI | Notes |
|---|---|---|
| Greece | 52.9 | 2-month high |
| Ireland | 52.2 | 2-month low |
| Netherlands | 51.1 | 7-month low |
| France | 50.7 | Flash: 50.6 · 42-month high |
| Spain | 49.6 | 8-month low |
| Austria | 49.3 | 2-month low |
| Italy | 47.9 | 9-month low |
| Germany | 47.0 | Flash: 47.7 · 10-month low |
