FX.co ★ Eurozone Manufacturing PMI Edges Higher in January, Signaling Ongoing Recovery

The HCOB Eurozone Manufacturing Purchasing Managers’ Index (PMI) inched up in January, rising to 49.5 from a previous reading of 48.8. While the index remains just below the 50-point threshold that separates contraction from expansion, the improvement points to a gradual stabilization in the euro area’s manufacturing sector.

Both the previous and current readings are dated January 2026, with the latest data update published on 2 February 2026. The uptick suggests that the downturn in manufacturing activity may be easing, as conditions move closer to flat growth across the bloc’s factories.

Although still in contractionary territory, the move toward 50 indicates that headwinds for manufacturers—such as weak demand and cost pressures—may be starting to soften. Markets and policymakers will be watching upcoming releases closely to see whether this tentative recovery gains further momentum in the coming months.