Germany’s flash manufacturing PMI rose to 52.2 in February from 48.5 in January, returning to expansion above the 50 threshold for the first time in months.
Output, new orders and employment all improved, with production hitting its strongest level since mid-2024 as domestic and export demand picked up.
The upside surprise lifted the euro and nudged German bond yields higher, easing immediate fears of a deeper industrial recession.
For the ECB, the data strengthens signs of recovery in the eurozone’s largest economy, though economists say one strong month is not yet a durable trend.