Eurozone manufacturing growth slows in January

Growth in the Eurozone manufacturing sector slowed at the start of the year, figures released on Monday showed.

The final Markit manufacturing Purchasing Managers’ Index for January came in at 52.3, in line with the flash estimate and down from 53.2 in December.

Markit said rates of expansion in output, new orders and new export business all eased during the month.

Still, the PMI has now remained above the 50 mark that separates contraction from expansion for 31 consecutive months.

Chris Williamson, chief economist at Markit, said: “The Eurozone’s manufacturing economy missed a beat at the start of the year. Having accelerated for three straight months, the rate of growth slipped from the 20-month high attained at the end of 2015.

“If the slowdown in business activity wasn’t enough to worry policymakers, prices charged by producers fell at the fastest rate for a year to spur further concern about deflation becoming ingrained.”

Markit said growth slowed in Germany, Italy and the Netherlands and stagnated in France and Greece.

However, Spain, Ireland and Austria all saw growth, with Spain regaining the top spot for the first time since January 2005.