Eurozone manufacturing PMI ticks higher for a second successive month

Markit released its April manufacturing PMI for the euro zone. Data showed that final Markit Eurozone Manufacturing PMI ticked higher for a second successive month, posting three-month high of 51.7. This was above March’s 51.6, the earlier flash estimate of 51.5 and the long-run survey average of 51.4.

Brighter news was provided on the employment and price fronts, as jobs growth gained momentum and deflationary pressures moderated. However, the reading was among the weakest registered over the past year. The index improved only marginally from a worryingly low base earlier in the year. Data hence shows no signs of ECB stimulus or the weaker euro helping to revive the manufacturing sector.

Of the six nations, five registered expansions with Italy and Spain showing the fastest growth. Netherlands and Austria posted modest expansions, while France remained in contraction territory during April as the PMI slipped to a 12-month low.

"The survey is signalling an anaemic annual rate of growth of manufacturing production of just less than 1%, which is half the pace seen in the months leading up to the recent slowdown." said Chris Williamson, Chief Economist at Markit.