Euro Zone Manufacturing Touches Six Year High in February

Euro zone manufacturing growth accelerated to a six-year high in February as a weaker euro helped drive strong demand for its exports, with inflationary pressure showing further signs of recovering, a business survey showed.

While the upturn in euro zone factory activity was not shared by all major economies, particularly France, prices rose faster across most countries in the region.

The IHS Markit euro zone manufacturing Purchasing Managers’ Index rose to 55.4 in February — the highest reading since April 2011 — from 55.2 in January, although it inched down from a flash estimate of 55.5.

That reading is well above the 50 mark denoting growth and suggests a solid pickup in activity. Optimism among euro zone manufacturers about future business is also surging.

An index measuring output, which feeds into a composite PMI due out on Friday, jumped to 57.3, which was also the highest in nearly six years. The flash composite PMI suggested economic growth of 0.6 percent in the first quarter.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza