Euro Area Composite PMI

The HCOB Eurozone Composite PMI inched higher to 51 in August of 2025 from 50.9 in the previous month, revised marginally lower from the flash estimate of 51.1 but remaining ahead of the initial market expectations of 50.7. The result reflected a third consecutive acceleration for the Eurozone's sharpest expansion in private sector activity in one year, with a fresh rebound among manufacturers (50.7 vs 49.8 in July) and slower growth for service providers (50.5). New orders at the aggregate level increased for the first time in 15 months, despite a reduction in new export orders. The signal of new capacity demand drove firms to increase their headcounts the most in 14 months. Meanwhile, input cost inflation accelerated to a five-month high, subsequently lifting output charges. Despite the stronger headline reading, business confidence was broadly unchanged in the period amid concerns of tariffs from the US and economic headwinds in the Euro Area.

The HCOB Eurozone Composite PMI rose to 51.1 in August of 2025 from 50.9 in the previous month, beating market expectations of a slowdown to 50.7 to mark the sharpest pace of expansion in the bloc's private sector output since May of the previous year, according to a flash estimate. The growth was supported by a third straight expansion in the services sector (50.7 vs 51) and an unexpected rebound for manufacturers (50.5 vs 49.8), their first in over three years. New orders at the aggregate level increased for the first time in 14 months, despite a reduction in new export orders. The signal of new capacity demand drove firms to increase their headcounts for the sixth straight month. On the price front, input cost inflation was at a five-month high, driving firms to increase their output charges the most in four months. Despite the stronger headline reading, business confidence eased for a second month amid concerns of tariffs from the US and economic headwinds in the Euro Area.

The HCOB Eurozone Composite PMI rose to 50.9 in July of 2025 from 50.6 in the previous month, tying the sharpest expansion in the Euro Area's private economic activity in seven months from March. The result was revised lower from initial estimates of 51, but remained slightly ahead of initial market expectations of a 50.8. The expansion was led by stronger activity for service providers (51.0 vs 50.5 in June) and a near stabilization for factories (49.8 vs 49.5), their least pessimistic result in three years. New orders at the aggregate level were marginally down in the period to nearly end 13 straight months of contraction, although output was higher in both sectors. In turn, the less pessimistic for new business drove firms to increase their staffing levels for the first time in five months. On the price front, input cost inflation eased to a five month low, driving firms to keep output charges unchanged following two months of declines.