- Markit's chief economist Chris Williamson
The Eurozone's manufacturing sector is showing signs of edging back to recovery despite the region's ongoing debt crisis, as Markit's purchasing managers' index, which reflects manufacturing activity, came in at 47.9 in January, compared with 46.1 the prior month. Still, the reading remains below the 50 line, which separates growth from contraction. However, manufacturing activity in the region is improving since August, when it bottomed at 44.0. Activity in Germany improved to 49.8 in January from 46.0 the previous month, while in Spain in Italy PMI improved to 46.1 and 47.8, respectively. January data point that the Eurozone is expected to return to growth in the middle of 2013.
"The improvement was led by Germany, which saw the strongest gain in output of all eurozone states, but rising exports are also helping to revive the manufacturing sectors of other countries, most notably Spain and Italy," Markit's chief economist Chris Williamson said Friday.
"While the industrial sector looks likely to have acted as a drag on the eurozone economy in the final quarter of last year, deepening the double-dip downturn, the PMI provides hope that the first quarter could mark the start of a turnaround."
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