The HCOB Eurozone Manufacturing PMI was confirmed at 49.4 in May 2025, up from 49.0 in April. The reading signaled the weakest pace of contraction in the manufacturing sector since August 2022, as output rose for the third consecutive month, at the the joint-quickest pace since March 2022. New orders stabilized after nearly three years of declines, while the rate of backlog depletion eased to its slowest since June 2022. On the downside, employment levels continued to fall, though at the mildest rate since September 2023. On the price front, input costs declined for the second straight month, marking the fastest drop in 14 months, while output prices were reduced for the first time since February. Looking ahead, business confidence improved to its highest level in over three years.