The HCOB Eurozone Manufacturing PMI rose to 50.5 in August 2025 from 49.8 in July, its first expansion since April 2022 and the highest in 38 months, beating expectations of 49.5, flash estimates showed. Production grew at the fastest pace in over three years, while new orders also increased for the first time since 2022. However, employment in the sector continued to fall, and firms cut back on purchasing activity at a quicker pace, though still among the slowest declines in recent years. Input costs rose for the first time in five months, and inventories of both purchases and finished goods fell at the sharpest rate since March. Supplier delivery times lengthened for the third straight month, with delays the worst since late 2022. Despite the stronger output and orders, business confidence weakened.