Euro zone factories round off first half of 2017 on six-year high: PMI
Reuters
Published Jul 03, 2017 06:49AM ET
Euro zone factories round off first half of 2017 on six-year high: PMI
By Jonathan Cable
LONDON, July 3 (Reuters) - Factories across the euro zone rounded off the first half of 2017 by ramping up activity at the fastest rate for over six years as rising prices failed to put a dent in orders, a survey showed on Monday.
IHS Markit's Manufacturing Purchasing Managers' Index for the euro zone rose to 57.4 in June, up from May's 57.0 and pipping the preliminary reading of 57.3.
June's reading was the highest since April 2011 and was comfortably above the 50 level that separates growth from contraction.
An index measuring output, which feeds into a composite PMI due on Wednesday, jumped to 58.7 from 58.3 - a level not seen in over six years.
"Euro zone manufacturing growth gained further momentum in June, rounding off the best quarter for just over six years," said Chris Williamson, chief business economist at IHS Markit.
Suggesting the momentum will continue into the second half, new orders rose at the fastest rate since early 2011, backlogs of work increased at the fastest pace in over 13 years, raw materials were depleted and factories increased headcount at a near record pace.
That meant manufacturers were at their most optimistic for at least five years. The future output index, which gauges expectations, soared to 67.4 from 66.0 - the highest level in the sub-index's history.
"There's no sign of the impressive performance ending any time soon. The manufacturing sector is clearly in expansion mode and looks poised for continued robust growth in coming months," Williamson said.
The upturn came alongside factories increasing prices, as they have done for nine months, welcome news to policymakers at the European Central Bank who have been battling for years to get inflation to their 2 percent target ceiling.
Inflation was a stronger-than-expected 1.3 percent in June, official flash data showed on Friday, and while still below target the strong economic data of late meant ECB chief Mario Draghi last week raised the prospect of policy-tightening.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.