Eurozone manufacturing PMI hits highest level on record in December - IHS Markit
Business activity in the eurozone accelerated in December, with manufacturing activity at a record high, according to figures released on Thursday.
IHS Markit's flash eurozone purchasing managers' composite output index - which measures activity in both the services and manufacturing sectors - rose to 58.0 from 57.5 in November, beating expectations for a reading of 57.2 and reaching its highest level since February 2011.
Meanwhile, the flash services PMI for the bloc rose increased to 56.5 from 56.2 in November, surpassing forecasts of 56.0.
The flash manufacturing PMI also came in comfortably ahead of expectations of 59.8 at 60.6, up from 60.1 in November and marking a record high. IHS Markit said the largest upturn in new orders since April 2000 was buoyed by export orders rising at a rate only marginally below November’s record high.
Chris Williamson, chief business economist at IHS Markit, said: "The eurozone economy is picking up further momentum as the year comes to a close, ending its best quarter since the start of 2011. The PMI is signalling an impressive 0.8% GDP increase in the fourth quarter, with accelerating growth seen in both Germany and France, where fourth quarter growth rates of 1.0% and 0.7-0.8% are indicated respectively."
He added: “The eurozone upturn is being led by a booming manufacturing sector, with a record PMI seen in December, but stronger domestic demand is also helping drive faster service sector growth. Demand in the region’s home markets is being buoyed by the improved labour market, with new jobs being created at a pace not seen for 17 years over the past two months."
Stephen Brown, European economist at Capital Economics, said: "The rise in the euro-zone Composite PMI capped off a strong year and puts the economy on a very firm footing for the start of 2018. But with the survey’s price indices edging down in December, the ECB will continue to take a cautious approach to normalising monetary policy."