The eurozone’s manufacturing economy performed strongly in February as operating conditions improved to the greatest degree for three years.
- Final Eurozone Manufacturing Purchasing Managers Index (PMI) at 57.9 in February
- Output and new orders up sharply as export trade strengthens
- Acute lengthening of delivery times drives fastest cost inflation in nearly a decade
Investment goods producers registered the strongest growth (the best since January 2018).
Apart from Greece, where the respective PMI slipped back just below 50.0, the upswing in manufacturing growth seen during February was broad-based with all nations registering stronger PMI readings compared to January. Germany and the Netherlands, where export gains remined especially strong, continued to lead the way in terms of overall growth.
Austria posted its best performance for three years, whilst the gains seen in Italy and France were the best since the start of 2018. Comparatively modest growth rates were seen in Spain and Ireland.
Producers are benefitting from resurgent demand for goods in both domestic and export markets, linked to post-COVID recovery hopes driving renewed stock building and investment in business equipment and machinery, as well as improved consumption.