Eurozone manufacturing sector gathers pace in November

The manufacturing recovery in the Eurozone gathered momentum in November, data released on Tuesday showed.

Markit’s final Eurozone Manufacturing purchasing managers’ index rose from 52.3 in October to 52.8 in November, in line with the “flash” estimate released last month and the highest level since April 2014.

The figure marked the 29th consecutive month the index has remained above the 50 threshold that indicates expansion.

Among the members of the 19-country bloc, Italy posted a four-month high of 54.9, while Germany and Spain both reached three-month high of 52.9 and 53.1 respectively, while Ireland slumped to a 21-month low of 53.3.

Greece, meanwhile, posted an eight-month high of 48.1 but remained in contraction territory.

The latest expansion of eurozone manufacturing production was underpinned by improving inflows of new business and the steepest intake of new export orders since May.

New export business rose in Germany, Italy, Spain, Ireland, the Netherlands and Austria, with rates of growth strengthening in all but the latter two of those nations, Marki added.

France and Greece saw new export business decrease. Eurozone manufacturing employment rose for the fifteenth successive month in November, with the rate of jobs growth ticking to its highest since August.

Companies generally linked increased staffing levels to improved new order inflows and higher backlogs of work.

“It would be wrong to get too gloomy about these data: the manufacturing sector is steadily reviving, and importantly generating jobs at an increased rate,” said Markit’s chief economist Chris Williamson.

“But with growth remaining modest, prices falling and manufacturing still some 10% smaller than its pre-crisis peak, the scene is set for the ECB to unleash further stimulus at its December meeting to ensure momentum continues to build.”