Daily Management Review

Eurozone industrial PMI falls to 54.8 points in January


The composite business activity index (PMI) for industry in the euro area fell slightly to 54.8 points in January from 55.2 points in December.

Such data was published by research company IHS Markit on 1 February. The January result was slightly better than analysts' expectations - they had forecast a PMI of 54.7 points.

The reason for the decline in manufacturing PMI was the re-introduction of lockdowns in many countries as well as some supply disruptions. 

Whilst business activity in industry continued to increase (a PMI above 50 represents an increase in business activity), it has simply slowed down. This is due to the fact that, unlike in the service sector, industrial companies mostly continued to operate during the quarantine measures this time.

"Industrial production in the eurozone continued to expand at a steady pace in early 2021, although this growth has slowed to its lowest since the recovery began, as the new quarantine measures and supply disruptions create additional challenges for manufacturers across the region," said IHS Markit chief business economist Chris Williamson.

source: reuters.com