Markit's eurozone manufacturing PMI highest since January 2014

IHS Markit’s final eurozone manufacturing purchasing managers’ index came in at 53.7 in November, in line with the flash estimate and up from 53.5 in October.

This was above the 50 threshold that separates contraction from expansion and marked the highest level since January 2014, with growth led by the Netherlands, Austria, Spain and Germany.

Markit said output prices rose at their fastest pace in more than five years, as cost inflation surged to a 56-month record.

Chris Williamson, chief business economist at IHS Markit, said: “Eurozone manufacturers are enjoying the best improvement in business conditions for almost three years, as 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. New export orders for manufactured goods rose at the fastest rate since February 2014.

“While the ECB looks poised to extend its quantitative easing programme at its December meeting, the upturn in growth and inflationary pressures will further fuel talk of whether we could see the ECB start tapering its asset purchases next year.”