Overview
- Euro zone manufacturing PMI fell to 48.8 in December, a nine-month low, as output slipped back into decline, new orders dropped at the fastest pace in almost a year, delivery times lengthened to the worst since October 2022 and input cost inflation rose to a 16‑month high.
- Germany’s final PMI slid to 47.0, with output contracting, export sales falling for a fifth month at the quickest rate since December 2024, deeper cuts to jobs and purchases, and input prices rising for the first time in nearly three years.
- France’s PMI climbed to 50.7, the highest since mid‑2022, as a surge in export orders—helped by aerospace—pulled the sector back to growth, even as domestic demand remained softer.
- The UK posted a 15‑month high at 50.6, showing modest expansion as output and new orders improved slightly, though price pressures ticked up and business optimism eased after earlier support from reduced budget uncertainty and the JLR restart.
- Country readings underscored divergence beyond the core: Spain fell to 49.6 and Italy to 47.9, Greece rose to 52.9, Ireland eased to 52.2, Australia held 51.6 with faster hiring, South Korea edged up to 50.1 on stronger exports, and India cooled to 55.0 with the weakest growth in 38 months and near‑flat hiring.