Eurozone posted growth in manufacturing output supported by stronger demand and fewer delivery delays in February.
- The IHS Markit Eurozone manufacturing purchasing managers’ index (PMI) came in at 58.2 in February, slightly weaker than the flash estimate for 58.4 and down from January’s reading of 58.7.
- The survey indicated that growth in both output and new orders among euro area manufacturers gathered momentum last month after improvements in January.
- There were also fewer supplier delivery delays across the month. Meanwhile, capabilities across the sector continued to be tested as rates of input cost and output price inflation eased in February.
- Joe Hayes, senior economist at IHS Markit stated that demand for goods is trending higher, with the rate of expansion surging to a six-month high.
Hayes further stated that the Russia-Ukraine crisis adds fresh fuel to inflation risks, and it will take prudent macroeconomic policy management to control inflation expectations.
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Source: IHS Markit