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February Flash PMIs Diverge: Europe and Asia Rebound, U.S. Loses Momentum

A manufacturing-led upswing outside the U.S. raises fresh policy questions for rate-setters.

People walk around the Financial District near the New York Stock Exchange (NYSE) in New York, U.S., December 29, 2023. REUTERS/Eduardo Munoz/File Photo
A commuter train passes by the skyline with its financial district ahead of the European Central Bank?s (ECB)  governing council meeting later this week in Frankfurt, Germany, October 25, 2021.  REUTERS/Kai Pfaffenbach
The skyline of the banking district is seen during sunset in Frankfurt, Germany, April 21, 2024.  REUTERS/Kai Pfaffenbach
Skyscrapers of the Canary Wharf commercial district are seen with The Shard building and construction cranes reflected in a perimeter glass wall of the viewing area of Garden at 120, in the City of London financial district, in London, Britain, September 23, 2025. REUTERS/Toby Melville

Overview

  • Eurozone activity accelerated to 51.9 with manufacturing back in growth at 50.8, led by Germany’s return to factory expansion (manufacturing 50.7, composite 53.1) as France hovered near stagnation at 49.9.
  • Japan strengthened to a 53.8 composite and 52.8 in manufacturing, with export orders surging at the fastest pace in eight years and backlogs rising at a record rate.
  • India’s composite PMI climbed to 59.3, the strongest in three months, as manufacturing hit 57.5 and firms reported faster hiring alongside the sharpest input-cost rise in 15 months.
  • The UK’s composite rose to 53.9 with factory export orders at a post‑Covid high, yet services firms continued cutting jobs, extending a 17‑month run of employment declines.
  • U.S. growth eased to a 10‑month low at 52.3 with employment near a standstill, while Australia cooled to 52.0 as cost and selling‑price inflation quickened to the highest since September.