The Eurozone’s Manufacturing PMI climbed to 52.2 in April 2026 from 51.6 in March, surpassing expectations of 50.8 and marking the strongest improvement in business conditions since May 2022. Production growth hit its fastest pace since August 2025, while new orders expanded at the quickest rate in four years, boosted by the first rise in export demand since February 2022. However, some of this growth stemmed from customers stockpiling amid fears of price hikes and supply shortages due to the Middle East conflict. Employment in the sector declined, though input buying rose at the fastest pace since May 2022. Meanwhile, inflationary pressures intensified, and business confidence fell to a 17-month low, signaling caution ahead.

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