The PMI numbers are out and they aren’t good. The euro zone manufacturing data showed continued pressure, shattering hopes of any improvement in the sector. Instead, Markit’s manufacturing purchasing manager’s index (PMI) fell to a 12-month low in February as expansions in production, new orders, new export business and employment “all lost momentum.”
Unemployment in the 19-country euro zone fell slightly in January but the data indicates continued slow growth in business activity and exports. According to the statistics agency, EuroStat, the unemployment rate in January was 10.3 percent in the euro zone, down from 10.4 percent in December, the lowest level since August 2011. The lowest unemployment rates were recorded in Germany (4.3 percent) and the highest in Greece (24.6 percent) and Spain (20.5 percent).
The data did little to lessen the pessimism in the euro zone’s economic outlook after consumer prices fell sharply in February to minus 0.2 percent and the slump in energy prices succeeded in putting more pressure on the European Central Bank to increase its stimulus measures next week.
THE EURO ZONE MANUFACTURING DATA SHOWED CONTINUED PRESSURE, SHATTERING HOPES OF ANY IMPROVEMENT IN THE SECTOR.
UK, Germany, Italy and Spain
Here are some specifics as reported in the February survey:
The rate of expansion in the UK manufacturing sector headed towards the stagnation mark. Output growth eased sharply with the slowdown reflected in the labor market where job losses registered for the second straight month. At 50.8 in February, down from 52.9 in January, the seasonally adjusted Markit/CIPS Purchasing Manager’s Index (PMI) posted its lowest reading since April 2013 – the first month of the current 35- month sequence of expansion.
Manufacturing growth in Germany slowed further in February with the final seasonally adjusted Markit/BME Germany Manufacturing Purchasing Managers’ Index (PMI) dropping from January’s 52.3 to a 15-month low of 50.5.
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