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The euro area manufacturing sector grew the fastest in two and a half years

At the end of last year, the euro area manufacturing sector grew the fastest in more than two and a half years.

The euro area manufacturing sector grew the fastest in two and a half years
Yazar: Tom Roberts

Yayınlanma: 4 Ocak 2021 20:27

Güncellenme: 3 Kasım 2024 09:36

The euro area manufacturing sector grew the fastest in two and a half years

At the end of last year, the euro area manufacturing sector grew the fastest in more than two and a half years. The engine was Germany, where activity in the sector expanded the sharpest in almost 3 years. The Purchasing Managers' Index (PMI) for the euro area manufacturing sector rose to 55.2 points in December from 53.8 points in November, IHS Markit said, slightly revising its preliminary estimate, which was expected to increase to 55.5 points. Despite the revision, the index remained high at the 50-point mark that separates the decline in activity from its expansion, reaching its highest level since May 2018. This signals that restrictive measures have hit the eurozone economy less than during the first wave of a new coronavirus pandemic in the spring. Developments in the eurozone manufacturing sector were encouraging at the end of the year, said IHS economist Markit Chris Williamson. "However, the increase in new coronavirus infections is likely to keep business conditions challenging and stifle growth." Part of the December growth, particularly in Ireland and the Netherlands, was due to a temporary increase in demand from British customers who were stockpiling before the end of the transition period and Britain's exit from the EU common market.
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