The number of European expansion sectors reaches a new high in nearly three years

Investing.com – According to the latest S&P Global Europe PMI data released on Wednesday, 15 out of 19 monitored sectors in Europe experienced output growth in February, the highest number of expanding sectors since March 2023.

Technology equipment companies led this round of expansion, with the most significant output increases across all monitored sectors at mid-Q1. This is the first time since December 2022 that this sector has topped the list. The broader technology category also benefited from steady growth in software and services activities.

The transportation sector ranked lowest in growth, with activity slightly contracting. Among industrial categories, industrial services, machinery, and building materials all saw output expansion.

The sectors that declined in February were mainly manufacturing, including household and personal goods, pharmaceuticals and biotechnology, and forestry and paper products.

New orders in 12 monitored sectors increased, reaching the highest level since May 2024. Although new sales in the forestry and paper products sector contracted significantly, the declines in other sectors were relatively mild, especially compared to the 2025 average levels.

All monitored sectors saw their cost burdens rise for the second consecutive month in February. Technology equipment manufacturers faced the highest input price inflation rate.

Stronger demand conditions allowed many companies to pass higher costs onto customers. Only three sectors—other financials, beverages and food, and pharmaceuticals and biotechnology—saw a decline in output prices, the lowest since October 2025.

In February, more sectors recorded employment growth, with employment in technology equipment, building materials, and healthcare services increasing again.

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