Manufacturing activity across the eurozone had sharply rebounded last month as a sweeping turnaround in demands made debarkations following more easing of pandemic-led restrictions in the region. In point of fact, factory activity across the eurozone had increased for the first time since January 2019 last month, IHS Markit’s final Manufacturing PMI (Purchasing Managers’ Index) data had revealed.
Nonetheless, still the eurozone economy had shrunk by a record 12.1 per cent over the second quarter of the year, however, an analysts’ poll had predicted an 8.1 per cent growth for the eurozone over the current-quarter.
In point of fact, Monday’s upbeat eurozone manufacturing PMI data came forth days after the leaders of Eurozone had agreed to a massive €750 billion pandemic relief bill alongside a trillion-euro budgetary aid for the EU between until end-2027 aimed at cushioning up the blows stemmed off the pandemic-driven economic downturn.
Eurozone manufacturing activity hits growth for the first time since early-2019
Besides, as factory activities appear to be playing a pivotal role en route towards economic recovery for the eurozone, IHS Markit’s survey for eurozone Manufacturing PMI had surged to 51.8 last month from a prior 47.4 a month earlier, hitting the above-50 deck that separates growth from contraction since January 2019.
On top of that, latest rebound of eurozone factory activity comes over the heels of a factory output composite PMI data for the eurozone that soared to 55.3 in July from 48.9 a month earlier, remarking the index’s highest level since April 2018.
Meanwhile, expressing an out and out optimism over the eurozone factory activity for the third quarter of the year, a chief business economist at IHS Markit, Chris Williamson said following reveal of Monday’s eurozone manufacturing PMI data, “Euro zone factories reported a very positive start to the third quarter, with production growing at the fastest rate for over two years, fuelled by an encouraging surge in demand.
Growth of new orders in fact outpaced production, hinting strongly that August should see further output gains. ”