Manufacturing PMIs take centre stage as 2026 begins
Eurozone factory activity contracted further in December, with production declining for the first time in 10 months amid accelerating declines in new orders, a survey reported on December 30.
The HCOB Eurozone Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 48.8 in December from 49.6 in November, marking a nine-month low and undershooting the preliminary estimate of 49.2. Readings above 50.0 show growth in activity, while those below 50.0 signal contraction. Regional divergence persisted; Greece (52.9) and Ireland (52.2) remained in expansion, while the Netherlands held marginally above 50 at 51.1. France surprised on the upside at 50.7.
However, core economies weakened sharply, with Germany (47.0) and Italy (47.9) sliding deeper into contraction, and Spain (49.6) dipping below 50 after a prolonged expansion.
UK manufacturing recovery gains momentum
The UK manufacturing posted its fastest growth in 15 months in December, as uncertainty surrounding the autumn budget and the Jaguar Land Rover cyberattack eased, a new survey shows.
The UK PMI Manufacturing was finalised at 50.6 in December, up from November’s 50.2. This reading confirmed continued expansion, despite being revised lower from the initial estimate of 51.2, tempering the strength of the signal heading into 2026.
US jobless claims end the year on a softer note
Americans filed the lowest number of new jobless claims in a month last week, signalling some improvement in unemployment benefits data, though the broader hiring environment remains subdued during President Donald Trump’s first year back in office.
According to the Labour Department, initial jobless claims dropped to 199,000, down 16,000 from the prior week’s revised level of 215,000, defying expectations for an increase to 220,000. The less volatile four-week moving average edged up slightly to 218,750, compared with 217,000 previously.
Continuing claims, which track the number of people receiving ongoing unemployment benefits, fell by 47,000 to 1.866 million for the week ended December 20. The four-week moving average of continuing claims also declined to 1,873,500, a decrease of 17,750 from the previous week’s revised average of 1,891,250.
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