The start of 2018 saw the eurozone economy continue its recent advance. Output growth accelerated to a near 12-year high, underpinned by solid inflows of new business and accompanied by the strongest phase of job creation since late-2000.
The final IHS Markit Eurozone Purchasing Managers’ Index (PMI) Composite Output Index posted 58.8 in January, its highest level since June 2006 and above the earlier flash estimate of 58.6. The headline index has signalled expansion for 55 successive months.
Growth of manufacturing production continued to outpace that of service sector activity in January. Although easing over the month, the rate of expansion in manufacturing output stayed close to December’s near-record high. The performance of the service sector continued to strengthen, with business activity growth accelerating to its best since August 2007.
Economic output expanded at solid rates across the nations covered by the survey:
- France moved to the top of the growth rankings, with its rate of expansion matching December and staying close to November’s near six-and-a-half year record.
- Germany (81-month high), Italy (139-month high) and Ireland (2-month low) achieved rates of growth only slightly below that of France.
- Growth in Spain also accelerated to a six-month high.
Source: Markit economics, https://www.markiteconomics.com