Eurozone PMI ended on a positive note in December as rates of growth in production, new orders, and new export business all improved, according to the latest PMI manufacturing data released this morning from Markit.
At 53.2 in December, up from 52.8 in November, the final Eurozone Manufacturing PMI reading in 2015 rose to its highest level since April 2014 and was slightly above the previous flash estimate of 53.1.
After Greek PMI rose above 50, December saw PMI readings in all of the Eurozone nations covered at levels signaling expansion for the first time since April 2014.
Italy was the fastest growing with its rate of expansion rising to 55.6, marking a 57 month record.
“The end of 2015 saw the Eurozone manufacturing recovery gain further traction, with rates of expansion in production and new orders over the final quarter besting those of quarter three. The sector is therefore likely to make a meaningful positive contribution to the euro GDP numbers for quarter four. Survey data also indicate that manufacturing growth over 2015 as a whole averaged above those achieved in each of the previous three years” said Rob Dobson, Senior Economist at Markit in a statement.
“While there is much to be positive about in these figures, the underlying picture is still one of solid yet unspectacular expansion. With Eurozone manufacturing still some 9 percent off its pre-crisis peak, it looks as if the sector still has some distance to travel before the climb back to fully recovery is completed” Dobson added later in the statement.
The report also showed that the euro’s decline over the past several months, pushed lower in large part to the ECB’s monetary easing policies, has helped to boost exports.
New export business at Eurozone manufacturers improved in December, with the rate of growth reaching a seven month high.