Industrial activity growth in Eurozone edges higher
IHS Markit's gauge of manufacturing in the euro area came in at 53.7 for last month, unchanged from the flash estimate, after a slight upward revision of the reading for October to 53.5. Results of the regular survey, published on Thursday, showed respondents saw input costs rising at the fastest pace since March 2012. Most of the increases in prices of raw materials came from metals, oil and imported goods. The trend spilled over to prices for clients, where the jump was the highest in more than five years.
The report said the headline purchasing managers' index climbed to a record level since the beginning of 2014, with the biggest contributions coming from the Netherlands, Austria, Spain and Germany. New orders advanced 0.6 points to 54.4, the highest point since February of the same year. Austria's PMI hit a 66-month high of 55.4, compared to the neutral 50-point mark. From the eight constituents, only Greece showed a decline in manufacturing activity, coming in at a one-year low of 48.3.
The overall rise was led by production and employment, where staffing increased across the board. The manufacturing PMI market its forty-first successive month on the positive side, a record streak.
"The benefits of a weaker currency and strengthening demand helped firms brush off political worries. The November survey provided firm evidence that the weaker euro is providing a meaningful stimulus to manufacturing, leading to greater import substitution and higher exports," said Chris Williamson, IHS Markit's chief business economist.