S&P Global Market Intelligence chief business economist Chris Williamson said euro-area PMI shows manufacturing is in its strongest growth phase in more than four years, with sustained expansion since February. The sector has proved resilient despite earlier cost and supply shocks from tariffs and conflicts in the Middle East and Ukraine. Rising defence spending, precautionary inventory rebuilding, supply-chain diversification and trade-flow shifts from US tariffs have created growth opportuniti

S&P Global Market Intelligence chief business economist Chris Williamson said euro-area PMI shows manufacturing is in its strongest growth phase in more than four years, with sustained expansion since February. The sector has proved resilient despite earlier cost and supply shocks from tariffs and conflicts in the Middle East and Ukraine. Rising defence spending, precautionary inventory rebuilding, supply-chain diversification and trade-flow shifts from US tariffs have created growth opportunities for many manufacturers. The recovery is uneven: French and Italian manufacturers remain weak, with French industry also hit by rising domestic political uncertainty. Input-cost inflation for purchased materials jumped in October to one of the highest levels in four years, driven by energy prices and supply bottlenecks. The PMI print increases pressure on the ECB to continue raising rates in coming months, adding new headwinds for companies.