Eurozone PMI rises as manufacturing sector returns to growth

(Sharecast News) - Private business activity across the eurozone increased at its fastest pace in three months in February, with the manufacturing sector returning to growth for only the second time in three and a half years. The flash estimate of February's Hamburg Commercial Bank (HCOB) composite purchasing managers' index (PMI) rose to 51.9 from 51.3 in January.

This was the 14th straight month of above-50 readings - the point which separates growth from contraction - and ahead of the 51.5 consensus forecast.

The services PMI rose to a two-month high of 51.8 from 51.6, while the manufacturing PMI jumped to 50.8 from 49.5, its first month of growth since August 2025 and the highest rate of growth since June 2022.

"It might be premature, but this could be the turning point for the manufacturing sector as the headline PMI increased to growth territory," said Cyrus de la Rubia, chief economist at HCOB.

"Since June 2022 this happened only once, in August of last year. This time, the overall basis for further growth seems to be a bit better," de la Rubia said, pointing to the volume of purchases, future output projections and inventory indicators.

"Overall, it seems that the manufacturing sector is on a more stable footing and could contribute to overall growth this year instead of being a drag for the economy."