February PMI readings indicate an unexpected revival in the European private sector, driven primarily by the first increase in activity in German industry in 44 months. While the eurozone and the United Kingdom are accelerating, the US economy shows signs of strain. The US activity index fell to its lowest level in ten months, which experts attribute to the negative impact of imposed tariffs on business operating costs.

German Industry with a Breakthrough

The PMI index for German industry rose to 50.7 points, ending a streak of declines lasting since 2022 thanks to a strong rebound in export demand.

Slowdown in the US

The US PMI index fell to 52.3 points, representing the lowest level in 10 months; the cause is high operating costs and tariffs.

Decline in Producer Prices

In Germany, producer prices fell by 3.0% year-on-year, thanks to cheaper energy and offering hope for further stabilization of inflation.

British Market Optimism

The United Kingdom recorded a PMI increase to 53.9 points, meaning the fastest pace of expansion since April 2024, despite job cuts.

The latest economic data for February 2026 brings a long-awaited breakthrough in Europe, alongside a deterioration in sentiment across the ocean. The key event is the return of the German manufacturing sector to a growth path. The PMI index for German industry rose to 50.7 points, surpassing the 50-point barrier for the first time since August 2022. This phenomenon pulled the entire region along; the composite indicator for the eurozone reached 51.9 points, a result significantly above analysts' expectations. The driving force was a rebound in export demand and stabilization of energy prices, which in Germany fell by 3% year-on-year, marking the strongest decline in nearly two years. A completely different situation prevails in the United States. The composite PMI index for the US economy fell to 52.3 points from 53.0 points in January. Although the US private sector is still expanding, the pace of this expansion is the slowest in ten months. Entrepreneurs point to rising production costs, a direct consequence of trade wars and the imposed tariffs. Even though the US Supreme Court recently overturned some of them, the impact of market uncertainty on orders and employment remains visible. In the United Kingdom, the situation appears stable – the PMI index rose to 53.9 points, although local service firms report job cuts in response to higher taxes introduced by the Labour government. The German economy, traditionally the locomotive of Europe, has been grappling with an energy and structural crisis since Russia's invasion of Ukraine in 2022, leading to the longest industrial recession in decades. Optimism in Europe is also visible in capital markets. European stock indices are recording their fourth consecutive week of gains, reflecting investors' belief in the durability of the current recovery. However, it should be noted that the situation within the European Union remains varied. While Germany and the Baltic countries are gaining from exports, in France the PMI index still hovers near the stagnation line (49.9 points), unable to sustainably return to the growth zone. Analysts emphasize that for further economic momentum, maintaining the downward trend in producer prices will be crucial, allowing central banks to continue easing monetary policy.