The IHS Markit Eurozone Manufacturing PMI was revised higher to 53.8 in November of 2020 from a preliminary of 53.6, but remained below 54.8 in October which was the highest in over 2 years. Still, the reading pointed to a strong growth in factory activity and above the long-run average. The goods sectors continued to expand at marked monthly rates but consumer goods producers registered a modest deterioration in operating conditions for the first time in six months. Except for the Netherlands and Ireland, all countries recorded a weakening of their respective PMIs during the latest survey period. Germany remained the best-performing country. Finally, business confidence improved to its highest for over two-and-a-half years. Dutch, Italian and German companies were the most confident manufacturers in November. source: Markit Economics

Euro Area Factory Growth Revised Higher: PMI

The IHS Markit Eurozone Manufacturing PMI was revised higher to 53.8 in November of 2020 from a preliminary of 53.6, but remained below 54.8 in October which was the highest in over 2 years. Still, the reading pointed to a strong growth in factory activity and above the long-run average. The goods sectors continued to expand at marked monthly rates but consumer goods producers registered a modest deterioration in operating conditions for the first time in six months. Except for the Netherlands and Ireland, all countries recorded a weakening of their respective PMIs during the latest survey period. Germany remained the best-performing country. Finally, business confidence improved to its highest for over two-and-a-half years. Dutch, Italian and German companies were the most confident manufacturers in November.

Eurozone Factory Activity Grows More Than Expected

The IHS Markit Eurozone Manufacturing PMI fell to 53.6 in November 2020, from 54.8 in the previous month but remained above market consensus of 53.1 as a renewal of lockdowns in many European countries so far have not had a significant effect on the factory activity. Manufacturing production continued to rise markedly, while inflows of new orders increased at the slowest rate recorded over the past five months. At the same time, employment declined at a softer rate and work-in-hand was up for a fourth successive month. On the price front, input cost inflation hit a near two-year high, while selling prices increased only slightly. Looking ahead, business confidence was the strongest since March 2018, due to encouraging news of vaccine developments in recent weeks.

 Eurozone Manufacturing Growth at 27-Month High

The IHS Markit Eurozone Manufacturing PMI was revised slightly higher to 54.8 in October 2020, from an initial estimate of 54.4 and compared with September’s final 53.7. The latest reading pointed to the steepest month of expansion in the manufacturing sector since July 2018, as output growth accelerated to an over two-and-a-half-year high and new orders rose by the most since the start of 2018.

 

Euro Area Factory Growth Above Forecasts: PMI

The IHS Markit Eurozone Manufacturing PMI increased to 54.4 in October of 2020 from 53.7 in September, beating market forecasts of 53.1. The reading pointed to the biggest increase in factory activity since August of 2018 as output and new orders growth quickened and backlogs of work were the highest since February of 2018. On the price front, input prices increased for the first time in 18 months and output cost rose for the first time since June of 2019. In contrast, job shedding intensified and business confidence deteriorated.

 

Euro Area Manufacturing PMI

In the Euro Area, the Markit Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 3,000 manufacturing firms. National data are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece. These countries together account for an estimated 90% of Eurozone manufacturing activity. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Manufacturing PMI in Euro Area is expected to be 52.90 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Euro Area to stand at 53.20 in 12 months time. In the long-term, the Euro Area Manufacturing PMI is projected to trend around 52.00 points in 2021 and 53.40 points in 2022, according to our econometric models.

Euro Area Factory Growth Revised Higher: PMI

The IHS Markit Eurozone Manufacturing PMI was revised higher to 53.8 in November of 2020 from a preliminary of 53.6, but remained below 54.8 in October which was the highest in over 2 years. Still, the reading pointed to a strong growth in factory activity and above the long-run average. The goods sectors continued to expand at marked monthly rates but consumer goods producers registered a modest deterioration in operating conditions for the first time in six months. Except for the Netherlands and Ireland, all countries recorded a weakening of their respective PMIs during the latest survey period. Germany remained the best-performing country. Finally, business confidence improved to its highest for over two-and-a-half years. Dutch, Italian and German companies were the most confident manufacturers in November.

Eurozone Factory Activity Grows More Than Expected

The IHS Markit Eurozone Manufacturing PMI fell to 53.6 in November 2020, from 54.8 in the previous month but remained above market consensus of 53.1 as a renewal of lockdowns in many European countries so far have not had a significant effect on the factory activity. Manufacturing production continued to rise markedly, while inflows of new orders increased at the slowest rate recorded over the past five months. At the same time, employment declined at a softer rate and work-in-hand was up for a fourth successive month. On the price front, input cost inflation hit a near two-year high, while selling prices increased only slightly. Looking ahead, business confidence was the strongest since March 2018, due to encouraging news of vaccine developments in recent weeks.

Eurozone Manufacturing Growth at 27-Month High

The IHS Markit Eurozone Manufacturing PMI was revised slightly higher to 54.8 in October 2020, from an initial estimate of 54.4 and compared with September’s final 53.7. The latest reading pointed to the steepest month of expansion in the manufacturing sector since July 2018, as output growth accelerated to an over two-and-a-half-year high and new orders rose by the most since the start of 2018.

Euro Area Factory Growth Above Forecasts: PMI

The IHS Markit Eurozone Manufacturing PMI increased to 54.4 in October of 2020 from 53.7 in September, beating market forecasts of 53.1. The reading pointed to the biggest increase in factory activity since August of 2018 as output and new orders growth quickened and backlogs of work were the highest since February of 2018. On the price front, input prices increased for the first time in 18 months and output cost rose for the first time since June of 2019. In contrast, job shedding intensified and business confidence deteriorated.

Euro Area Manufacturing PMI

In the Euro Area, the Markit Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 3,000 manufacturing firms. National data are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece. These countries together account for an estimated 90% of Eurozone manufacturing activity. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Source: Markit Economics