Euro zone factories ended 2017 with record high growth

An employee works on an engine production line at a Ford factory on January 13, 2015 in Dagenham, England.

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An employee works on an engine production line at a Ford factory on January 13, 2015 in Dagenham, England.

Euro zone manufacturers ended 2017 by ramping up activity at the fastest pace in more than two decades, a survey showed on Tuesday, along with rising demand suggests they will start the completely new year on a high.

The bloc’s economy outpaced its peers last year, along with the European Central Bank plans to scale back its stimulus programme via This particular month. IHS Markit’s December final manufacturing Purchasing Managers’ Index for the bloc was 60.6, matching an earlier preliminary reading along with above November’s 60.1. that will was the highest since the survey began in June 1997.

An index measuring output, which feeds into a composite PMI due on Thursday along with seen as a not bad guide to economic health, rose to 62.2 via November’s 61.0 – its highest in over 17 years along with has only been above that will once within the survey’s history.

“The euro zone manufacturing boom gained further momentum in December, rounding off the best year on record along with setting the scene for a strong start to 2018,” said Chris Williamson, chief business economist at IHS Markit.

“Forward-looking indicators bode well for the completely new year: completely new orders rose at a near-record pace, while purchasing growth hit a completely new peak as firms readied themselves for higher production.

Meanwhile, job creation was maintained at November’s record pace.”

Despite factories raising prices again last month, albeit at a slightly weaker rate than in November, an index measuring completely new orders nudged up to 61.5 via 61.4, a level not seen since around the start of the century.

Inflation was 1.5 percent in November, below the ECB’s 2 percent target ceiling, nevertheless the central bank announced in October that will will halve its monthly asset purchases to 30 billion euros via January.

A majority of economists in a Reuters poll last year said they thought the ECB should shut the door on the program in September, nevertheless they were split on whether that will actually could.

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