Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted a 69-month high of 55.2 points in January this year, up from December’s 54.9 points and up from the earlier flash estimate of 55.1 points.
The start of 2017 saw a marked improvement in business conditions at euro zone manufacturers. Output growth held steady at December’s 32-month record, underpinned by the strongest inflows of new business and the fastest job creation since the first half of 2011. Price pressures continued to intensify, however, with rates of inflation in input costs and output charges both gathering pace.
January saw euro area manufacturing production rise for the forty-third successive month, supported by higher volumes of total new business and new export orders. The rate of growth in new export business accelerated to a three-year high, reflecting both the recent depreciation of the euro and signs of improving global market demand.
“Euro zone manufacturing is off to a strong start to the year, enjoying the fastest rate of expansion for almost six years in January. Rates of growth of new orders, exports and employment have all hit multi-year highs, with the depreciation of the euro playing a key role in helping drive new sales in export markets,” stated Chris Williamson, chief economist at IHS Markit.