The HCOB Eurozone Manufacturing PMI inched higher to 40.5 in June of 2025 from 49.4 in the previous month, revised marginally higher from the flash estimate of 49.4, but remaining firmly below the initial expectations of 49.8. The result reflected the 35th consecutive month of contraction in the Eurozone's factory activity, albeit at the softest pace in 34 months to signal only a slight downturn in manufacturing conditions. New orders were broadly unchanged, driving firms to continue depending on their backlogs and increase production levels for the fourth straight month. In the meantime, staffing numbers edged down, while purchasing levels were cut back. The softer demand for inputs drove operation costs to ease, which led to a drop in output charges for factories. Looking forward, business confidence was the highest in over three years.