Eurozone: Slight slowdown in manufacturing PMI in February

The growth dynamics of the manufacturing industry in the euro area slowed slightly last month, but activity remained strong and supply chain problems eased slightly, although factories and consumers have to deal with rapidly rising prices.

The manufacturing PMI in the eurozone fell to 58.2 points in February from 58.7 points in January, against estimates for 58.4 points.

The index that measures production, and which is considered a good driver for financial health, rose to 55.5 points from 55.4 points.

“Do not let the fall in the index distract you from what should be considered a positive month for the manufacturing sector in February,” said IHS Markit economist Joe Hayes.

“Underlying sales conditions are clearly strengthening as Europe surpasses the Omicron wave and companies are stepping up their recovery efforts,” he added.

Demand has grown at the fastest pace in the last six months and with factories generating more outstanding balance, the number of employees has increased to complete orders.

The need to add raw materials, combined with the protracted supply problems caused by the pandemic, pushed prices higher and factories passed this on to consumers.

Estimates even point to a further rise again, as the Russian-Ukrainian crisis sent Brent prices higher.

Source: Capital

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