The eurozone’s manufacturing sector lost steam in November as incoming new orders declined, according to the latest HCOB Eurozone Manufacturing PMI figures published Monday.
The headline PMI slipped to 49.6 from October’s 50.0, dropping below the key 50.0 mark that signals expansion versus contraction. The reading—its weakest in five months—indicates a renewed, albeit mild, deterioration in manufacturing conditions across the bloc.
The Manufacturing PMI Output Index also edged down, falling to 50.4 from 51.0 in October. While still pointing to modest growth, the measure hit a nine-month low.
Performance diverged sharply across member states. Germany and France, the eurozone’s largest economies, saw their PMI readings slide to nine-month lows at 48.2 and 47.8 respectively. By contrast, Ireland posted the strongest expansion with a reading of 52.8, closely followed by Greece at 52.7.
New orders—the most influential component of the PMI—declined again after briefly stabilising in October. Export orders fell for the fifth straight month, underscoring persistent weakness in external demand.
Despite these pressures, output continued to grow for a ninth consecutive month, though at the slowest pace of the current recovery phase. Manufacturers intensified cutbacks, with employment levels, purchasing activity, and inventories all contracting more sharply than in October. The rate of job losses was the steepest since April.
Supply chain strains also worsened. Suppliers’ delivery times lengthened to their highest level since October 2022, contributing to a notable uptick in input costs—the most pronounced increase since March, following months of relative price stability in 2025.
“The current picture of the eurozone is sobering, as the manufacturing sector is unable to break out of stagnation and is even tending towards contraction,” said Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.
Still, sentiment among manufacturers improved, rising above its long-run average to the strongest level since June. Dr. de la Rubia added that “most companies in the eurozone are confident that they will be able to expand their production in the next twelve months,” with confidence strengthening in Germany and shifting from pessimism to optimism in France.
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