Eurozone Manufacturing PMI Weakened in January 2018
Eurozone Manufacturing PMI in January 2018
According to a report by Markit Economics, the final Eurozone Manufacturing PMI (Purchasing Managers’ Index) showed an improvement in January 2018. It stood at 59.6 in January 2018 compared to 60.6 in December 2017. It was in line with the preliminary market expectation of 59.6. The expansion to 60.6 in December was the Eurozone’s record expansion since 1997.
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The Eurozone Manufacturing PMI in January was mainly due to the following:
- Production volume and output rose at a slower rate in January 2018.
- New business orders and export orders grew at a faster rate in January 2018.
- Employment growth in the manufacturing sector weakened marginally in January 2018.
Impact on the economy
The fundamental factors of the Eurozone showed solid improvement in the past 15 months. Major economic indicators such as the consumer confidence index, the business confidence index, and manufacturing and service activity showed solid improvement in the past few months. However, January’s manufacturing and service activity showed weaker improvement, mainly due to slower improvement in client demand.
In the next part of this series, we’ll look at the performance of the Japan Manufacturing PMI in January 2018.