Eurozone Manufacturing Sees Modest Growth in January

Eurozone manufacturing production rose slightly in January, hitting a two-month high as the HCOB Eurozone Manufacturing PMI climbed to 49.5 from 48.8 in December. The Output Index reached 50.5, a three-month high, marking the first growth after December’s decline. New factory orders fell for the third straight month, while job losses persisted at a slower pace. Purchasing activity and inventories dropped, yet business confidence surged to its highest since February 2022. Input costs jumped to a three-year high, but output prices stayed largely flat, limiting manufacturers pricing power factors that weighed on European stock markets. Regionally, growth was recorded in Greece (54.2), France (51.2), and the Netherlands (50.1), while Germany (49.1), Italy (48.1), Spain (49.2), and Austria (47.2) contracted. Exports remained weak, yet optimism for the year ahead hit a four-year peak.