-Chris Williamson, IHS Markit
Manufacturing activity in the Euro zone rose at its fastest pace since 2011 in January, a preliminary survey showed on Tuesday.
IHS Markit reported its Purchasing Managers' Index for the region's manufacturing sector advanced to 55.1 points in January, up from December's 54.9. The number slightly topped economists' expectations for an increase of 54.8. The January figure marked the best reading in 69 months. In the meantime, the flash Services PMI declined to 53.6, its three-month low, following the December upwardly revised reading of 53.7 and missing economists' forecasts for 53.9. The survey revealed that the PMI Output Index decreased slightly to 54.3 from the previous month's 54.4 points. In addition, the data showed a rebound in employment, which climbed to the highest level since February 2008.
Separately, Markit also reported that the preliminary PMI Index for the German manufacturing sector climbed to 56.5 points from 55.6 in December, while the Services PMI fell to 53.2 points from 54.3. Both manufacturing and services sectors in Germany are set to grow in the upcoming months, despite ease in the private sector. According to the latest projections, companies are supposed to avoid political risks and focus on sales growth in 2017.
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