Eurozone manufacturing PMI down in January

ANKARA

The Purchasing Managers’ Index (PMI) in the eurozone manufacturing sector fell in January on a monthly basis, a London-based global data company said on Monday.

The PMI for the eurozone manufacturing sector fell to 54.8 in the month, down from 55.2 in December, IHS Markit data showed.

While the current growth sequence was also extended to seven months, the rate of expansion was down since December, it reported.

The IHS Markit data showed the growth was recorded across all three broad market groups.

"However, the improvement in operating conditions seen at consumer goods producers was marginal amid a drop in new orders. In contrast, marked rates of expansion continued to be recorded in both the intermediate and investment goods sectors at the start of 2021," it said.

The Netherlands saw the best expansion rate for over two years with 58.8 and it was followed by Germany with 57.1.

Italy also turned in its best performance for nearly three years, reaching 55.1.

Chris Williamson, chief business economist at IHS Markit, said: "Eurozone manufacturing output continued to expand at a solid pace at the start of 2021, though growth has weakened to the lowest since the recovery began as new lockdown measures and supply shortages pose further challenges to producers across the region."

He stressed that supply chain delays worsened during the month to a degree only exceeded once, which was during the global lockdowns early last year, in more than two decades of survey history.

He also noted that supply shortages have put pricing power in the hands of suppliers, pushing raw material prices sharply higher.