Manufacturing activity picks up in Euro zone and Germany last month

Manufacturing activity in the Euro zone rose markedly in the last month of 2016, a private survey showed on Monday. IHS Markit reported its final Purchasing Managers' Index for the region's manufacturing sector advanced to 54.9 points in December, unchanged from the preliminary reading and up from November's 53.7. The December figure was the highest since April 2011. Furthermore, the survey revealed that the PMI Output Index increased to 56.1, its 32-month high, from the previous month's 54.1 points. Moreover, despite the fastest growth in prices in more than five years, the New Orders Index accelerated to 55.9 last month, hitting its highest level since April 2011 and surpassing November's 54.4. Last month, the European Central Bank prolonged its QE program until the end of 2017, lowering its 80 billion euros monthly asset purchases to 60 billion euros. Separately, Markit said the final PMI Index for the German manufacturing sector climbed to 55.6 points, a 35-month high, after posting 54.3 in November. The results pointed to considerable improvements in both domestic and overseas demand. The German economy grew 0.2% in the Q3 of 2016, after expanding 0.7% and 0.4% in the Q1 and Q2, respectively. However, should have supposedly rebounded in the Q4 of 2016.