The industrial sector of the eurozone is on the path to recovery, as shown by the latest research from the London-based company Markit, whose index reached its highest level in 11 months in January.
The Purchasing Managers’ Index (PMI) for the eurozone’s industrial sector reached 47.9 points in the first month of this year, marking its highest value in eleven months. Markit has thus raised its initial estimate for January, which was 47.5 points. In December, the index stood at 46.1 points.
Industrial production in the eurozone decreased for the eleventh consecutive month in January, but at the slowest pace since the beginning of the downward trend, Markit notes. The decline in new orders has also eased significantly.
Data for individual eurozone members again show significant differences, with industrial production in Germany rising for the first time in ten months due to the stabilization of new jobs and new export orders. Growth was also recorded in the Netherlands and Ireland.
In France, the decline in activity in the industrial sector accelerated again in January, Markit emphasizes, warning of the fastest drop in production and industrial orders in three and a half years.
Indicators suggest that the eurozone’s industrial sector is on the verge of stabilization, after recording a decline for most of last year, noted Markit’s chief economist Christ Williamson.
– If the debt crisis in the region does not worsen again, the data supports expectations that the eurozone is on the right track to record activity growth by mid-2013 at the latest, Williamson emphasized.
