Eurozone manufacturing accelerates in December

Posted on: January 4th, 2021 by Phil Matten

The final IHS Markit Eurozone Manufacturing PMI® for December read 55.2, up from November’s 53.8. There were stronger increases in output and new orders, but supply side shortages led to delivery delays and price increases. 

Investment goods producers recorded the strongest improvement, followed by intermediate goods, also registering marked growth. Operating conditions for consumer goods manufacturers strengthened marginally. 
Germany continued to lead the growth (PMI: 58.3), followed by stronger readings from the Netherlands (58.2) and Ireland (57.2). Other country PMIs read: Austria 53.5, Italy 52.8, France 51.1, Spain 51.0, Greece 46.9. 

New export orders increased markedly and to a greater extent than November, led by Germany and the Netherlands. Backlogs of work increased for the fifth month running, which suggests some pressure on capacity. Despite that, there were further cuts in employment across the zone: most notably in Germany, although Italy and, to a lesser extent, France reported increases. 

Production was impacted by delivery delays, with extensive reports of supplier shortages and Coronavirus-related delays. Average input inflation increased rapidly. Selling prices consequently increased for the third month running, also at a stronger rate. Business confidence improved to the highest level in nearly three years. 

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