- Euro-zone Manufacturing PMI Ease in January
The Euro-area manufacturing sector eased from near record high in January, according to the IHS Markit report.
Manufacturing Purchasing Managers’ Index expanded at 59.6 in January, down from the 60.6 recorded in December. The lowest in three months and represent the 55 consecutive months of expansion.
Growth in the Euro-area remained strong, despite output and new orders easing slightly in January. Businesses in the region indicated that they were experiencing strong inflows of new business from both local and international markets during the month.
Also, data showed employment in the sector climbed for the forty-first successive month in January, indicating that the job market is healthy despite weak wage growth and low inflation rate.
“Employment showed one of the largest gains yet recorded by the survey as firms expanded capacity in line with rising demand,” said Chris Williamson, Chief Business Economist at IHS Markit.
According to the report, inflationary pressures for both output charges and input prices rose at a faster pace in the month, with output price inflation rising to 80-month high. Again, the high commodity prices are aiding inflationary pressure as the demand for certain inputs outstripped supply.
Speaking further, Chris Williamson said: “The eurozone’s manufacturing boom continued in full swing in January. Output grew at one of the fastest rates recorded over the survey’s 20-year history, matched by a further near-record surge in new orders.”
The Euro gained slightly against the U.S. to $1.2427.
