Eurozone Manufacturing Growth Hits Four-Year High
A new survey shows that manufacturing activity in the eurozone rose to its highest level in more than four years in August. At the same time, an initial estimate from the European Union’s statistics office showed that the bloc’s annual inflation rate also increased from 2.9% in July to 3.3%.
Reuters reported that, based on a survey by S&P Global, the eurozone manufacturing purchasing managers’ index rose to 52.7 in August, up from 51.9 in July. A reading above 50 on the index indicates growth in manufacturing activity.
According to the report, factories received more orders in August, and export orders also increased for the second time in four and a half years after a prolonged period of decline. The figures suggest stronger foreign demand for goods produced in the region.
The factory output index also climbed from 52.9 in July to 53.3 in August, described as its highest level in 54 months. Joe Hayes, senior economist at S&P Global Market Intelligence, said the August data showed that the eurozone industrial sector continued to grow despite higher oil prices and supply chain problems caused by the war in the Middle East.
Among member states, Germany recorded its strongest manufacturing growth in more than four years, while France also contributed to the region’s overall expansion. However, manufacturing activity in Italy and Spain declined.
Alongside these developments, Eurostat said in its preliminary estimate that annual inflation in the eurozone reached 3.3% in August. The figure remains above the European Central Bank’s 2% target.
The eurozone includes 21 European Union member states that use the euro as their common currency. The purchasing managers’ index is considered one of the key indicators for assessing economic activity in manufacturing and services sectors.
