Eurozone economic data shows mixed signals in August 2026

Eurozone manufacturing hits four-year high as Germany surges, Italy contracts

Eurozone manufacturing activity picked up in August, with the PMI rising to 52.7—the highest in about 51 months—led by Germany’s strongest growth in over four years and supported by improvements in France and broader regional demand; however, Italy remained in contraction. Separately, Sweden’s manufacturing PMI also signaled solid expansion at 56.1, underscoring a broader euro-area evidence of improving factory output and orders across major European economies, aided by easing input costs though supply pressures persist.

Euro zone inflation jumps to 3.3%, fueling bets on higher rates