Markit’s Eurozone Manufacturing Purchasing Managers Index (PMI) posted 54.8 points in January, down from December’s 55.2 points and increasing compared to the earlier flash estimate of 54.7 points.
All three broad market groups recorded growth in January. However, the improvement in operating conditions seen at consumer goods producers was marginal amid a drop in new orders. In contrast, marked rates of expansion continued to be recorded in both the intermediate and investment goods sectors at the beginning of 2021.
According to Markit, the growth of the euro zone manufacturing economy remained resilient in January, with the sector expanding for a seventh successive month and again at a marked pace. New orders which rose for the seventh month in a row, increased markedly. New export orders registered their best growth performance in the past three months.
“Euro zone manufacturing output continued to expand at a solid pace at the start of 2021, though growth was weakened to the lowest since the recovery began as new lockdown measures and supply shortages pose further challenges to producers across the region. At the moment, manufacturing is providing an important support to the economy as the service sector is hit by Covid-19 restrictions, but this support is waning. Any potential delays to the vaccine roll-outs will add an additional layer of uncertainty to the outlook,” Chris Williamson, chief business economist at IHS Markit, commented.