Robust growth in euro industry as UK improves
MANUFACTURERS in the Eurozone reported further solid growth in February, while UK industry continued to expand at a robust pace.
The headline reading of data firm Markit’s purchasing managers’ index (PMI) for the manufacturing sector was 53.2 in the euro area this February. The figure was down slightly from 54 in January, the highest level recorded for two and a half years. Any number over the neutral 50 mark indicates growth.
The figure for the UK rose marginally to 56.9, up 0.2 points in a month. Though growth appears to be slightly slower than seen at the end of 2013, it is still stronger than any of the major Eurozone economies.
PMI scores for Italy and Germany dipped in February, down to 52.3 and 54.8 respectively. Spain’ reading reached 52.5, the highest recorded in nearly four years.
“The turbulence in emerging markets may have dented confidence a bit, in particular in Germany and Italy, but were not serious enough to reverse the gradual uptrend in the economy,” said Berenberg’s Christian Schulz, adding that the figures do not suggest any new need for action from the European Central Bank.
On the UK, BNP Paribas economist David Tinsley added: “Overall this was a status quo report, but that itself is positive. In the fourth quarter of last year manufacturing production rose at 0.7 per cent on the quarter. On the basis of the current outlook a similar expansion looks sustainable at the start of 2014.”
PMI readings for both the Chinese and American manufacturing sectors have also been released.
According to Markit and HSBC’s survey of the sector, which dominates the Chinese economy, January was the third month of decline. The country recorded a score of 48.5.
The US PMI for manufacturing, produced by the Institute for Supply Management (ISM) climbed to 53.2, a rise of almost two points from January’s reading.