(Alliance News) - Manufacturing production in the eurozone grew at an over three-year-high in April, data published by S&P Global showed Friday.

The Hamburg Commercial Bank eurozone manufacturing purchasing managers' index improved to a 32-month high of 49.0 points in April from 48.6 in March, beating the flash reading of 48.7 points published on April 23.

Getting closer to the neutral 50-point mark separating growth from contraction, it indicates the pace of contraction slowed in April.

The HCOB eurozone manufacturing PMI output index grew to a 37-month high of 51.5 in April from 50.5 in March, outperforming the flash reading of 51.2.

"New orders continued to fall, but there was a near-stabilisation of demand as the rate of contraction slowed further. Export markets were the principal drag on sales performances, underlying survey data implied. Softer rates of contraction were also seen for employment, stocks and purchasing activity, but confidence was the weakest in 2025 so far," S&P Global said.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: "The near stabilisation of the industrial economy was helped by a production pick-up in both Germany and France in April, and Italy is fighting its way back into expansion territory. This may have been spurred by the fall in oil and gas prices in April, and this was underscored by a decline in input prices, which had risen in each of the three months prior. Interest rate cuts by the ECB and the prospect of further monetary easing are also likely to have been welcome news for companies.

"Manufacturers were clearly able to expand their profit margins in April, as purchasing prices fell while selling prices rose at their fastest pace in two years. This is unlikely to continue, however, as US tariff policy is likely to see Chinese goods being offered more widely in the EU, intensifying competition."

The PMI survey features a panel of 3,000 private sector companies, with responses collected between April 9 and 23.

Services and composite PMIs for the eurozone are due on Tuesday.

By Tom Budszus, Alliance News slot editor

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