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Global PMIs Diverge to End 2025 as Eurozone Contracts, Germany Slumps and India Cools

Final December surveys highlight weakening orders and re‑emerging cost pressures that leave the 2026 manufacturing outlook fragile.

A Hanwha Aerospace engineer works at a factory in Changwon, South Korea, March 16, 2023.   REUTERS/Kim Hong-Ji
A steel worker walks through an electric-arc furnace at Hascelik Melt Factory near Bilecik, Turkey, October 3, 2025. REUTERS/Umit Bektas
Solinotes perfume bottles are filled on the production line at the Corania factory in Les Pennes-Mirabeau, near Marseille, France, August 1, 2025. REUTERS/Manon Cruz
A man works at a production base of China Construction Steel Structure Corp Ltd (CSCEC Steel) in Meishan, Sichuan province, China September 3, 2019.  REUTERS/Stringer

Overview

  • Euro zone manufacturing PMI fell to 48.8, a nine‑month low, with production back in decline, new orders dropping at the fastest pace in nearly a year, and input cost inflation rising to a 16‑month high.
  • Germany’s final PMI was revised down to 47.0, with output contracting for the first time in 10 months, export orders falling sharply, input prices rising for the first time in almost three years and staffing cut at a quicker pace.
  • India’s PMI eased to 55.0, the weakest since late 2023, as new orders and exports lost momentum, hiring nearly stalled, and price pressures stayed comparatively mild.
  • The UK PMI rose to 50.6, a 15‑month high, helped by stock‑building and one‑off factors such as a major automaker’s restart and budget clarity, while input costs ticked higher and business optimism softened.
  • Other snapshots underline the split: Spain (49.6) and Italy (47.9) slipped back into contraction, South Korea edged into expansion (50.1) on stronger exports but faced faster input inflation, Australia held in growth (51.6) with supply delays and higher costs, Turkey neared stabilisation (48.9), and Canada stayed in decline (48.6) with tariff‑linked uncertainty and rising input prices.