Eurozone PMI Manufacturing was finalized at 57.9 in February, up from January’s 54.8. Markit said output and new orders were up sharply as export trade strengthens. But acute lengthening of delivery times drove fastest cost inflation in nearly a decade.
Looking at some member states, Germany PMI manufacturing hit 37-month high at 60.7. The Netherlands rose to 29-month high at 59.6. Austria rose to 36-month high at 58.9. Italy rose to 37-month high at 56.9. France rose to 37-month high at 56.1. However, Greece dropped to 2-month low at 49.4.
Chris Williamson, Chief Business Economist at IHS Markit said: “Manufacturing is appearing as an increasingly bright spot in the eurozone’s economy so far this year. The PMI has reached a three-year high to run at a level that has rarely been exceeded in more than two-decades of survey history – notably during the dot-com bubble, the initial rebound from the global financial crisis and in 2017-18…
“The growth spurt has brought its own problems, however, with demand for inputs not yet being met by supply. Shipping delays and shortages of materials are being widely reported, and led to near record supply chain delays. Prices paid for inputs are consequently rising at the fastest rate for nearly a decade, hinting at further increases in consumer price inflation in coming months, at least until supply and demand come back into balance.”
