FX.co ★ Euro Area Manufacturing Sector Weakens

The HCOB Flash Eurozone Manufacturing PMI experienced a downturn to 49.7 in November 2025, marking a five-month low compared to October's figure of 50 and falling short of the anticipated 50.2. The decline was reflected in both new orders and employment, with the latter decreasing consistently on a monthly basis for the past two and a half years. Although output saw a slight increase, input costs rose for the first time in three months, accelerating at the highest rate in eight months, while selling prices remained stable. Business sentiment saw an uptick, with optimism hitting its highest point in five months. Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, highlighted that "firms have further cut their inventories of both intermediate and finished goods more significantly than the previous month, indicating that the inventory cycle still shows no signs of a rebound. We remain several months, possibly even several quarters, away from witnessing sustained growth in the manufacturing sector."