Eurozone manufacturing PMI rises at fastest pace in more than five years in Dec

IHS Markit's final 2016 manufacturing Purchasing Managers' Index for the euro zone rose to 54.9 in December, in line with an earlier flash estimate. The index compared to a reading of 53.7 in November and was its highest since April 2011.

December PMI data suggested Eurozone manufacturers started 2017 on a solid footing, ramping up activity at the fastest pace in more than five years and building up a burgeoning order book.

Index measuring output, which feeds into the composite PMI, jumped to a 32-month high of 56.1 from 54.1. New orders sub-index climbed to 55.9 from 54.4, its highest since April 2011, suggesting strength will continue into the next month.

PMI readings improve in all nations covered. Growth was strongest in the Netherlands and  Austria. PMI indices hit a near three-year high in Germany, an 11-month peak in Spain and a 67-month record in France.

"Much of the upturn in demand and the rise in price pressures is attributable to the depreciation of the euro. While the strong end to 2016 is encouraging news the manufacturing revival clearly remains vulnerable to political risk," said Chris Williamson, Chief Business Economist at IHS Markit.