Germany drives manufacturing up in Eurozone

RECOVERY in the Eurozone continues to be driven by Germany and France, new figures revealed yesterday.

Manufacturing growth showed a modest increase in November across the single currency area.

The Purchasing Managers Index (PMI) for manufacturing rose to 55.3, up from 54.6 in October.

French PMI hit its highest rate for a decade, shooting up to 57.9, from October’s 55.2.

Meanwhile in Germany, the increase in manufacturing employment rose at the second highest rate in the history of the index.

Yet the situation remains bleak in peripheral areas of the Eurozone, particularly troubled states such as Spain and Greece.

Manufacturing PMI in Spain dropped to 50, the rate at which no growth is recorded. Output, new orders and employment all contracted, dropping below the 50 mark.

The decline of Greek manufacturing continues, with PMI still sunk at 43.9, despite a minor improvement of 0.3 points.

“While there was a slight upturn in Ireland, its rate of growth is way below that needed for meaningful recovery,” said Chris Williamson, an economist at Markit.