Manufacturing activity across the euro area strengthened in March, with the S&P Global Eurozone Manufacturing PMI increasing to 51.6 from 50.8 in February, reaching its strongest reading since mid-2022, according to figures released on Wednesday.
The Manufacturing Output Index edged up to 52.0 in March from 51.9 the previous month, marking a seven-month high. Industrial production expanded for the third straight month, supported by continued growth in new orders, which matched the rapid pace recorded in February — the fastest in 46 months.
Demand from overseas markets stabilized during the period, bringing an end to eight consecutive months of declining export orders. Meanwhile, outstanding workloads increased for the first time in nearly four years.
Supply chain pressures intensified during March as the conflict in the Middle East disrupted global logistics. Delivery times from suppliers lengthened to the greatest degree in just over three and a half years. Manufacturers in the eurozone also increased their purchasing activity for the first time since June 2022.
Cost pressures accelerated, with input prices rising at the fastest pace since October 2022, reaching a 41-month high. Companies also lifted selling prices at factory gates at the quickest rate in just over three years as higher costs were passed through to customers.
Among the eight countries included in the survey, Greece recorded the strongest PMI reading, followed by Ireland. Germany and Italy posted their best results in 46 months and 37 months, respectively. France’s manufacturing sector remained largely stagnant, while Spain was the only economy still showing contraction.
Employment in the sector continued to fall, with job cuts occurring at a faster pace in March. Inventories of both purchased materials and finished goods were also reduced more sharply during the month.
Confidence among manufacturers weakened to a five-month low, although companies still expect activity to grow over the coming year. Even so, optimism slipped below its long-term average.
The survey data were gathered between 12 and 24 March 2026 from roughly 3,000 private-sector companies across the eurozone.
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