Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) rose to a six-year high of 56.7 points in April this year, up from March’s 56.2 points and down from the earlier flash estimate of 56.8 points.
The euro zone manufacturing sector continued to gain momentum at the start of the second quarter.
Underpinning the gain in the level of the euro zone manufacturing PMI were stronger rates of expansion in output, new orders and faster job creation. Longer supplier delivery times also had a positive effect on the PMI level.
April saw manufacturing production and new orders both expand to the greatest extents since April 2011. Companies reported that demand improved from both domestic and export clients.
Price pressures remained elevated during the latest survey month. Input costs increased at a rate close to February’s 69-month high. As a consequence, selling prices continued to rise, with the pace of inflation close to March’s near six-year record.
“The latest survey readings indicate that manufacturing is growing at an annual rate of approximately 4-5 percent, which should make a significant contribution to overall economic growth,” stated Chris Williamson, chief economist at IHS Markit.