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Manufacturing PMIs Rise Across Europe

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Manufacturing PMIs Rise Across Europe

Markit Economics have released their Manufacturing Purchasing Manager Indices for several European countries, with the odd small exception these have improved across the board during the month of April. The overall Eurozone index came in at 53.4, beating the consensus estimate of 53.3 and also topping last month’s reading of 53.0.

Spain was one of only two countries to post a fall back on the month, even then only very slightly. The Spanish PMI number came in at 52.7 just a fraction off the 52.8 posted in March but significantly missing the 53.4 consensus estimate.

France also managed to drop back on the month, falling from 52.1 to just 51.2, the anticipated number was 50.9 and this was easily beaten.

The Italian numbers recorded the largest increase, rising from 52.4 to 54.0 on the month, consensus was for an increase to just 52.8.

The key German figure came in with a slight gain, 54.1 was recorded against a March reading of 53.7. Germany, along with Spain, missed the consensus estimate, economists had been expecting a reading of 54.2 for the Eurozones largest economy.

Finally, Greece has posted one of the more significant PMI numbers this month. The Greek reading of 51.1 takes the index for this country back into an expansion phase following the contractionary March reading of 49.7.

The growth in these manufacturing figures in Europe is accelerating at a pace which provides solid evidence that the roots of recovery are firmly in place. Part of the confidence being projected by the improving PMIs relates to the fact that not only are consumer prices increasing at a very slow rate but that input prices in the manufacturing process are remaining stable and in many cases they are in fact falling, this will become more evident on Monday with the publication of the Eurozone producer price index which is expected to show an annualized 1.8% fall in input prices.

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