The eurozone’s manufacturing sector is finally on a charge after several years of broad stagnation, and surged ahead in September, according to the latest data from IHS Markit released on Monday.
Markit’s manufacturing PMI for the eurozone grew from 51.7 in August to 52.6 in September, matching the earlier flash estimate.
The purchasing managers index (PMI) figures from Markit are given as a number between 0 and 100.
Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the better.
Within Europe, the continent’s major economies were the big drivers of the growth, with Germany and France both hitting multi-month highs, and Italy climbing to a two-month high.
Here are the breakout readings provided by Markit:
- Spain manufacturing — 52.3, previous 51
- Italy manufacturing — 51, previous 49.8
- France manufacturing — 49.7, previous 49.5
- Germany manufacturing — 54.3, previous 53.6
- Greece manufacturing — 49.2, previous 50.4
And here is the single currency area-wide chart:
Speaking about the results, IHS Markit’s chief business economist Chris Williamson said (emphasis ours):
“The key message from the September survey is that the euro area’s manufacturing economy continues to expand at an encouragingly solid pace. The PMI points to production rising at a steady 2% annual pace in the third quarter, with momentum picking up in September.
“Production gains are being driven by welcome signs of improving demand from both within the region and from wider export markets.
“For a region beleaguered by still-high overall unemployment, the fact that the upturn is generating more jobs is especially good news. The latest rise in factory payroll numbers was one of the best seen over the past four years.”
At 9:30 a.m. BST (4:30 a.m. ET) Markit will release the latest set of confirmed UK manufacturing data since the vote to leave the European Union, which are expected to show a slight slowing from August’s numbers which saw a huge bounce in the UK’s manufacturing sector after a huge drop in the immediate aftermath of the Brexit vote.