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Eurozone Factories See Modest Output Rise Amidst Falling Orders
2 Feb
Summary
- Eurozone manufacturing activity remained in contraction for third month.
- New orders fell for the third consecutive month in January.
- Input costs rose fastest in three years due to higher energy prices.
Eurozone factory activity remained in contraction territory in January, marking the third consecutive month of subdued performance. The HCOB Eurozone Manufacturing Purchasing Managers' Index (PMI) edged up to 49.5, a marginal improvement from the previous month.
Despite a return to modest growth in production, a key component of the index, persistent weakness in new orders continued to drag down overall activity. This marked the third successive month of declining new orders. Factory job cuts also continued, though at a slower pace.
The manufacturing landscape showed significant divergence across member states. Greece and France reported expansion, with France experiencing its highest reading in over three and a half years. Conversely, Spain, Germany, Italy, and Austria all remained in contraction, with Austria showing the weakest performance.
