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Global Factory PMIs Signal Broader Rebound as Costs Climb and China Surveys Diverge

Domestic orders, not exports, are powering the upturn.

A factory machine of Valencia Plastics creates wide mouth canisters, in Rye Canyon, in Valencia, California, U.S. December 23, 2025.  REUTERS/Aude Guerrucci
An old, disused gold mining operation is seen against the skyline of Johannesburg, South Africa, September 27, 2024. REUTERS/Ihsaan Haffejee
The financial district with the headquarters of Germany's largest business bank, Deutsche Bank (C), is photographed on early evening in Frankfurt, Germany, January 29, 2019.  REUTERS/Kai Pfaffenbach
An employee works inside a Nucor steel factory in Blytheville, Arkansas, U.S., March 28, 2025.  REUTERS/Karen Pulfer Focht

Overview

  • India’s HSBC manufacturing PMI rose to 56.9 in February, driven by the strongest domestic order growth since October, while new export orders slowed to a 17‑month low and firms lifted selling prices at the fastest rate in four months with only marginal hiring.
  • The euro zone’s PMI climbed to 50.8, its fastest pace since mid‑2020, as Germany returned to growth at 50.9; input costs accelerated sharply and factory selling prices rose, even as employment continued to decline.
  • UK manufacturing registered 51.7, with production at a 17‑month high and new export business at the strongest rate since August 2021, though cost pressures intensified and job cuts eased but persisted.
  • U.S. ISM manufacturing held at 52.4, but the prices‑paid index jumped to 70.5, its highest since October 2022, with new orders still expanding and the employment gauge remaining below 50 as tariff policy weighed on sentiment.
  • China’s private PMIs diverged from official readings, with manufacturing at 52.1 and services at 56.7 showing faster expansion and stronger export demand alongside rising input prices and only cautious hiring.