The Eurozone's manufacturing sector remained in contraction in March, although activity improved, according to the latest report by S&P Global and the Hamburg Commercial Bank (HCOB) on Tuesday.
The manufacturing Purchasing Managers' Index (PMI) rose to 48.6 from 47.6 in February, reaching its highest point in 26 months. Production levels increased for the first time since March 2023. Job cuts cooled from February's four-and-a-half-year record and were the softest in seven months, while there was a slight drop in business confidence.
"Things are looking up. The PMI has increased for the third month in a row and the output index even surpassed the threshold for growth. A significant part of this movement may have to do with the frontloading of orders from the U.S. ahead of the tariffs, which means some backlash is to be expected in the coming months," HCOB Chief Economist Cyrus de la Rubia said.
