The recovery in the euro zone
manufacturing sector entered its second month during August. Markit's Eurozone
Manufacturing Purchasing Managers Index (PMI) rose to 51.4 in August, up from 50.3 in July, increasing for the fourth successive month to reach its highest level since June 2011. The PMI was also above the earlier flash estimate of 51.3.
Among the nations covered by the survey, France and Greece were the only ones to register readings below 50, while the others saw improved PMIs. The upturns in
production at German, Italian, Dutch and Austrian manufacturers all strengthened on the back of improving inflows of new business. Output also rose further in Ireland and returned to growth in Spain as a result of an increase in new business.
Chris Williamson, chief economist at Markit, said, "
Manufacturing in the euro area continued to show signs of recovery in August. Although gains are still only modest, companies reported the strongest improvement in business conditions for just over two years, with a pickup in new orders growth suggesting the upturn will be sustained into September."