FX.co ★ Eurozone Manufacturing Contraction Eases in July

In July 2025, the HCOB Eurozone Manufacturing PMI witnessed a slight increase, reaching 49.8 from 49.5 in June, closely aligning with market predictions of 49.7, based on preliminary estimates. This figure reflects the slowest rate of contraction in the sector since July 2022, alongside a modest rise in output and a deceleration in job losses, which have not eased so significantly since June 2023. Nevertheless, there was a continuing decline in new orders, suggesting persistent demand challenges. From a pricing perspective, input costs experienced another decline, although this was minor—the smallest reduction observed in the last four months. Meanwhile, output prices remained stable in July, halting a two-month trend of decreases. Despite the less severe downturn, there was a dip in business confidence during July.