Markit's final 2016 manufacturing Purchasing Managers' Index for
the euro zone registered 54.9 in December, in line with an
earlier flash estimate and its highest since April 2011.
That was above both the 50 mark which separates growth from
contraction and November's 53.7. An index measuring output,
which feeds into the composite PMI, jumped to a 32-month high of
56.1 from 54.1.
"Euro zone manufacturers are entering 2017 on a strong footing,
having ended 2016 with a surge in production," said Chris
Williamson, chief business economist at IHS Markit.
"To put the PMI data into perspective, the five-and-a-half-year
high reached in December is broadly consistent with factory
output growing at an impressive annual rate of approximately 4
Suggesting this month will also be strong, a new orders
sub-index climbed to 55.9 from 54.4, its highest since April
2011, even though companies raised prices at the fastest rate in
over five years.
"Policymakers will be doubly pleased to see the manufacturing
sector's improved outlook being accompanied by rising price
pressures," Williamson said.
In a surprise move last month, the European Central Bank cut
asset purchases but promised protracted stimulus to aid a
still-fragile recovery and bolster weak inflation.
Detailed PMI data are only available under license from Markit
and customers need to apply to Markit for a license.
To subscribe to the full data, click on the link below: http://www.markit.com/Contact-Us
(Reporting by Jonathan Cable, editing by Larry King)
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