Germany’s flash Manufacturing PMI rose to 54.1 in February 2026 from 52.0 in January, beating the 52.0 consensus estimate and marking the fastest expansion since mid-2024. Compiled by S&P Global from purchasing managers’ surveys, the index measures activity across output, new orders, employment and supplier delivery times; readings above 50 indicate expansion. February marked a second consecutive month of growth after a brief slowdown at the start of the year. Although the full sub-index breakdown is not yet available, the improvement likely reflects stronger new orders and output, resilient domestic demand, gradually stabilizing export markets, and easing energy costs and supply-chain pressures. The preliminary result remains subject to revision, while geopolitical uncertainty and potential trade disruptions could weigh on the sector. As Germany is the eurozone’s largest economy, the data may influence expectations for European Central Bank policy. A sustained improvement could lessen the case for further rate cuts and encourage a more hawkish stance, while weaker final data could support continued accommodative policy. Investors and policymakers will watch the final PMI release and upcoming German and eurozone data for confirmation that the recovery is sustainable.