Eurozone factories see growth but rebound lacks momentum
MANUFACTURING sector growth in the Eurozone reached a 10-month high in March, adding to evidence that the economy is recovering from a slowdown late last year.
A survey of private sector firms – Markit’s purchasing managers’ index – increased to a score of 52.2 from 51.9 in February, according to data released yesterday. While figures above 50 mark growth, 52.2 points to sluggish growth.
Chris Williamson, chief economist at Markit, said the survey “signalled slightly stronger growth of the manufacturing economy… adding further to signs that the Eurozone economy is reviving after last year’s slowdown”. The Eurozone economy nearly entered a triple-dip recession last year, but just about managed to avoid negative growth.
“This is still a fledgling recovery, however, and the overall rate of expansion remains only modest. Importantly, manufacturing is still in decline in France, Greece and Austria, acting as drags on the [currency union’s] revival,” Williamson said.