Eurozone manufacturers see strongest quarter in 4.5 years

Markit’s survey of manufacturing in the Eurozone showed activity rose to a 20-month high in December.

The flash services PMI activity index fell to 53.9 from 54.2, which was a three-month low, but the manufacturing PMI rose to a 20-month high of 53.1 from 52.8 in November.

Markit’s flash Eurozone PMI composite output index slipped to 54.0 in December from 54.2 the previous month, marking a two-month low but still well above the 50 threshold that separate expansion from contraction.

The flash Eurozone manufacturing PMI output index nudged up to 54.4 from 54.

Chris Williamson, chief economist at Markit, said: “The Eurozone economy enjoyed a comfortably solid end to 2015, though policymakers are likely to remain disappointed by the relatively modest pace of expansion and lack of inflationary pressures, given the stage of the recovery and the amount of stimulus already in place.

“Although the PMI edged lower in December, the fourth quarter as a whole saw the largest increase in business activity for four-and-a-half years. The survey is signalling a quarterly GDP rise of 0.4%, meaning the region grew 1.5% in 2015.”