Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) rose to a 70-month high of 55.4 points in February this year, up from January’s 55.2 points and down from the earlier flash estimate of 55.5 points.
Euro area manufacturing production and new orders both rose at the quickest rates since April 2011. Companies indicated that domestic demand remained solid in a number of markets, while the weak euro contributed to the fastest growth of new export business for almost six years.
There were also signs that rising demand for raw materials (purchasing activity rose at the second steepest pace in almost six years) led to sellers’ markets developing for a number of inputs. This was highlighted by supplier lead times lengthening to the joint-greatest extent since mid-2011.
“Euro area manufacturers are reporting the strongest production and order book growth for almost six years, in what is looking like an increasingly robust upturn,” stated Chris Williamson, chief economist at IHS Markit.