Markit’s Eurozone Manufacturing Purchasing Managers Index (PMI) posted 57.9 points in February, up from January’s 54.8 points and increasing compared to the earlier flash estimate of 57.7 points.
All three broad market groups recorded an improvement in operating conditions during February. Investment goods producers registered the strongest growth, followed by intermediate goods. Although consumer goods recorded comparatively modest growth, it was nonetheless its best performance since last September.
According to Markit, Eurozone Manufacturing PMI was driven by sharper gains in both output and new orders, which were the best since last October’s recent peaks. Higher exports were a key driver of overall new order gains.
“Euro zone manufacturing output is appearing as an increasingly bright spot in the euro zone’s economy so far this year. Euro zone manufacturing purchasing managers’ index has reached a three-year high. Producers are benefitting from resurgent demand in both domestic and export markets, linked to post-pandemic recovery hopes driving renewed stock building and investment in business equipment and machinery, as well as improved consumption. The solid manufacturing expansion is clearly helping to offset ongoing virus-related weakness in many consumer-facing sectors, alleviating the impact of recent lockdown measures in many countries and helping to limit the overall pace of economic contraction,” Chris Williamson, chief business economist at IHS Markit, commented.