A weaker inflow of new export orders has slowed activities in the eurozone’s manufacturing sector in February, Markit reported on Thursday, assessing that a stronger euro may be beginning to limit exports and that the peak of the growth trend in the industry may have been reached.
The Purchasing Managers’ Index (PMI) for the eurozone manufacturing sector fell by one point in February compared to January, to 58.6 points, Markit reported. This slightly raised the initial estimate of its value.
– Although the PMI for the eurozone manufacturing sector fell for the second consecutive month in February, survey data shows that factories are still recording the strongest growth in activity in 18 years, emphasizes Markit’s chief business economist Chris Williamson.
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However, he warns of signs that growth in the coming months could further weaken.
– The slowdown in the inflow of new export orders to the lowest level in 11 months suggests that the strengthening of the euro may be beginning to limit exports, explains Williamson.
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– The pace of new job creation is still among the strongest in the 20-year history of the survey but has slightly slowed due to weaker order inflows, fueling doubts that the peak of the growth trend in the industry is behind us, he concludes.
Among the leading economies in the euro area, the Netherlands recorded the strongest growth in the history of the survey. In other countries, the pace of growth in the manufacturing sector has slowed, although it remains very strong, Markit notes.
