Eurozone Factory Slump: Manufacturing Woes Deepen as New Orders Decline

Eurozone manufacturing activity weakened further in December as production declined for the first time in 10 months, fueled by decreased orders. The Manufacturing PMI fell to 48.8, marking its lowest reading in nine months, with Germany's economy performing the weakest. Despite challenges, optimism for 2026 has improved.

Eurozone factory activity slumped further into contraction in December, as production saw its first decline in 10 months, according to a survey published on Tuesday.

The HCOB Eurozone Manufacturing Purchasing Managers' Index, prepared by S&P Global, dropped to 48.8 from November's 49.6, indicating the lowest level in nine months and falling short of preliminary estimates.

Germany, the bloc's economic powerhouse, registered the weakest performance, while France showed resilience with a PMI at a 42-month high, amid supply chain pressures and cost inflation challenges.

(With inputs from agencies.)