- Rob Dobson, Senior Economist at Markit
The Euro zone manufacturing sector continued to recover in December, with every country enjoying output growth and job creation in the reported month. The Euro bloc's final manufacturing PMI climbed to 53.2 in December, up from 52.8 a month earlier, marking the highest reading since April 2014. Moreover, the average PMI reading for 2015 as a whole was better than in the prior three years. Italy enjoyed the fastest growing activity in the manufacturing sector, with its rate of expansion rising to a 57-month high. New export orders at Euro zone manufacturers rose to the highest level in seven month. Furthermore, December saw a rise in manufacturing workforce levels registered in all of the nations for the first time since August 2007.
A separate report showed consumer prices in Germany, the Euro zone powerhouse, unexpectedly slowed their growth in December. Inflation in Europe's number one economy climbed to an annualized 0.3% in the reported month, compared with the 0.4% growth in November. Measured on a monthly basis, the gauge dropped 0.1% in December, down from a 0.1% uptick in the preceding month. German inflation remains stubbornly below the ECB target of just under 2%.
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