| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : EU Economy Last Updated: Jan 3, 2011 - 9:36 AM


Eurozone manufacturing growth in December accelerated and job creation rose to 10-year high
By Finfacts Team
Jan 3, 2011 - 9:31 AM

Email this article
 Printer friendly page
Source: Markit

The Markit Final Eurozone Manufacturing PMI (Purchasing Managers' Index) rose to 57.1 in December, up from the earlier flash estimate of 56.8 and its highest reading since April’s 46-month peak. The level of the PMI accelerated throughout Q4 2010 and has remained above the neutral 50.0 mark for 15 months in a row. Growth of output and new orders drove job creation to a 10-year high.

The average PMI reading for the final quarter was 55.7, slightly above the 55.2 recorded in Q3, but below Q2’s three-and-a-half year high of 56.4. For 2010 as a whole, the PMI average (55.4) was well above that for 2009 (43.3).

National PMI readings generally moved higher, led by a near record in Germany. The only exceptions were France (which nevertheless saw the fourth highest PMI reading overall) and Greece (where the PMI remained well below the 50.0 no-change mark).

Manufacturing production rose for the seventeenth consecutive month and at the fastest pace since July.

The expansion was led by strong growth in Germany and robust expansions in France and Austria. Italy saw a marked improvement in its rate of increase, which hit a five-month high. Growth accelerated in the Netherlands (seven-month peak) and Ireland (fastest since June), while Spain saw renewed expansion following November’s decline. Although Greek manufacturing remained mired in deep recession, the rate of contraction eased to a five-month low.

Consumer, intermediate and investment goods producers all reported faster growth of output. Capital goods was the stellar performer, seeing a rate of increase exceeded only once in the 13-year survey history (April 2000). Consumer goods remained the weakest performer.

December saw the fastest growth of new orders since April, led by marked increases in Germany, the Netherlands, Austria and France. Italy and Spain meanwhile saw renewed growth, while the rate of increase in Ireland accelerated slightly. In contrast, Greece saw new orders fall at the steepest pace since March 2009.

New export orders increased at the fastest rate for seven months. Growth was especially strong in Germany and France, but also generally picked up elsewhere in the currency union. The only exceptions were a slower increase in Ireland and a further marked decline in Greece.

There was also evidence that Eurozone manufacturers – especially those in the strongest performing nations – were preparing for further production growth in the coming months. Purchasing activity increased to the greatest extent in eight months in December, and input inventories rose for only the second time in the past three-and-a-half years. Meanwhile, stocks of finished goods declined again and this, combined with stronger new order inflows, drove the new orders-to-inventories ratio to an eight-month high.

December saw jobs growth accelerate for the fourth month running to its fastest pace since October 2000. Germany reported a survey record rate of increase, while Austria saw near record job creation. The Netherlands and France saw employment rise again, but at slower rates than in November. The labour market recovery also broadened to include Italy and Ireland. Only Spain and Greece reported job losses.

May 2000’s survey record high. Companies saw higher prices for energy, plastics, steel and textiles. Cost inflation accelerated in almost all of the nations covered by the survey, the sole exception being Ireland. The Netherlands saw the highest rate of increase, although the sharpest accelerations were in Austria, Germany and Spain.

Part of the increase in costs reflected ongoing supply-chain pressures, as average vendor lead times deteriorated to the greatest degree since July.

Chris Williamson, Chief Economist at Markit said: "Manufacturing output growth gathered pace again in December, putting the sector on a strong footing to start the New Year. The data are consistent with industrial production rising across the single currency area at a quarterly rate of 2%. Although down from May’s near 3% peak, December’s growth represents a reassuring revival from the slowdown seen during the autumn.

"Germany remained the star performer, seeing near-record growth, followed by France, where the PMI slipped only slightly from November’s ten-year peak. However, welcome signs of recoveries were also evident in the periphery, where export sales helped boost output growth in all cases except Greece, where the rate of decline at least moderated.

"The data therefore suggest that the manufacturing recovery may be broadening out to help lift economic growth outside of the French-German core in early 2011."

The Eurozone Manufacturing PMI (Purchasing Managers' Index) is produced by Markit and is based on original survey data collected from a representative panel of around 3,000 manufacturing firms. National data are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece.

Source: Markit

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015