FX.co ★ Eurozone Manufacturing PMI Improves Slightly in January 2026

The Eurozone manufacturing sector saw a modest boost at the start of 2026, as the HCOB Eurozone Manufacturing PMI edged up to 49.4 in January. This marks a slight increase from December 2025, where the index held at 48.8. The data, updated on January 23, 2026, suggests a mild easing in the contraction of the manufacturing sector across the Euro Zone.

Despite remaining below the critical 50.0 threshold—which separates expansion from contraction—the improvement in the index points towards a gradual stabilization within the market. The increase to 49.4 reflects a slow but promising trend towards recovery in the manufacturing sector, hinting at a potential breakout into expansion if the upward momentum continues in the upcoming months.

Manufacturers across the Euro Zone are keenly observing these developments, as the slightly improved January figures may signal more robust economic conditions in the near future. Although the economic landscape remains challenging, the gradual optimism could pave the way for strategic adjustments and investment within the manufacturing arena, steering the sector closer towards growth and stability.