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Eurozone Manufacturing Rebounds As Domestic Demand Spurs Growth


Manufacturing activity in the eurozone recorded its first expansion since mid-2022 in August, bolstered by a surge in domestic demand and output. The report, based on the HCOB Eurozone Manufacturing Purchasing Managers’ Index (PMI), signals an encouraging turnaround for future production as optimistic projections emerge from key market indicators.

Record PMI Levels Indicate Renewed Growth

The HCOB Manufacturing PMI reached a three‐year high of 50.7 in August, climbing from 49.8 in July and surpassing the critical growth threshold of 50. This significant improvement outstripped preliminary estimates and highlighted a robust rebound in factory output—the strongest since March 2022. Additionally, new orders, a vital measure of demand, expanded at their fastest rate in nearly three and a half years, reinforcing the sector’s overall positive momentum.

Domestic Demand Offsets Global Uncertainties

Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, emphasized that domestic orders have been instrumental in mitigating the impact of weakening external demand. “The economic recovery in the manufacturing sector is broadening… Incoming orders also offer hope for a sustainable recovery,” de la Rubia noted. As US tariffs continue to exert pressure, boosting domestic consumption appears to be a critical strategy in sustaining production levels, with many industry players expecting increased output over the next 12 months.

Country-Specific Insights And Economic Implications

Among eurozone nations, Greece and Spain stood out with PMIs of 54.5 and 54.3, respectively, marking vigorous factory growth. France and Italy experienced moderate expansions, while Germany, Europe’s largest economy, posted a modest increase to 49.8—a 38-month high that nearly reached the growth threshold. This development offers a welcomed respite for Germany, which saw its economy contract by 0.3 percent last quarter amid declining U.S. demand.

Outlook Amid Policy Considerations

Despite the favorable indicators within the manufacturing sector, overall economic sentiment in the eurozone remains mixed. A recent European Commission survey highlighted deteriorating economic outlooks for the region, contrasting with the optimistic forecasts from manufacturers regarding future production. Meanwhile, incremental price decreases in manufacturing, despite marginal increases in input costs, provide additional context for the evolving market dynamics.

Anticipating Further Policy Implications

With the European Central Bank maintaining its key rate at 2 percent, policymakers appear poised to hold steady in the near term. Further adjustments, particularly discussions on rate cuts, are expected to resume in the autumn should the economic landscape continue to be challenged by factors such as persistent U.S. tariffs.


Esports Must Put Children’s Rights Ahead Of Competitive Ambitions, Report Says

Competitive gaming can help children build skills, find community and pursue achievement. However, as esports grows, young players face health, psychological and online safety risks, often without consistent safeguards, according to a new report from Save the Children.

The report, Protecting Child Rights in Esports, estimates that up to 300 million children worldwide participate in esports. It calls on the industry to prioritise the rights set out in the United Nations Convention on the Rights of the Child over competitive ambitions.

Potential risks include disrupted sleep, musculoskeletal pain, anxiety, depression, sexism and online harassment. Intensive training can also leave less time for education, family and friends.

“Esports offers exciting opportunities for children, but participation should never come at the expense of their rights, wellbeing or development,” said Theo Toresson, a psychologist and gaming expert at Save the Children.

Children must be treated “as children first and competitors second”, he added, calling for their involvement in decisions that affect them.

Training Standards Remain Uneven

The report highlights the lack of widely established standards for training hours and methods. Extended periods of sitting, insufficient breaks and schedules that interfere with sleep, exercise and schoolwork can affect young players’ health and development.

Poor posture and long sessions may also cause neck, shoulder and wrist pain, while late-night gaming can undermine sleep, concentration and mood.

Although some organisations provide guidance on breaks, nutrition, sleep and hydration, a representative of a national esports federation told the report that this advice often draws on separate studies rather than a centralised set of guidelines.

The report also notes positive findings: many professional esports players report satisfactory levels of physical activity, and higher-ranking players often place greater emphasis on fitness.

Online Harassment Adds To Mental Health Risks

Gaming communities and livestreaming platforms can help young players build connections and public profiles, but they may also expose them to cyberbullying, discrimination and privacy violations.

An analysis cited in the report examined chatrooms across 302 gameplay segments involving the 20 most popular Twitch streamers. It found sexist language in 62% of streams, racist language in 37%, ableist language in 84% and violent language in 97%.

Some esports federations and teams require staff to receive mental health first-aid training, but the practice remains uncommon. Young competitors may also face public scrutiny through livestreams, interviews and social media before they have the support to manage it.

Safeguards Must Extend Beyond Gameplay

The report raises further concerns about unequal participation linked to gender, race, LGBTQIA+ identity and disability. It also highlights children’s limited involvement in decisions affecting them and the risk of economic exploitation by teams, agents or parents, particularly where contracts lack transparency.

Inadequate supervision at live events presents additional risks.

Save the Children argues that protecting young competitors requires more than advice on posture and screen breaks. Clear standards, responsible oversight and age-appropriate safeguards are needed to ensure esports supports children’s development rather than putting it at risk.

As competitive gaming expands, the industry faces growing pressure to make children’s rights and wellbeing part of its operating standards.

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