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Rob Dobson, Senior Economist at Markit said: “The eurozone manufacturing sector showed continued resilience in August, with output growth and inflows of new business both strengthening. Based on the historical relationship, the PMI is tracking at somewhere close to a 2% annualised increase in industrial production so far in the third quarter, a modest gain but still representing a positive step forward.”
“The job numbers are also looking more positive, with employment rising at the fastest pace in four years. On the inflation front, lower oil prices led to the first dip in input costs since February, while selling prices remained close to stagnation. “By nation, the Netherlands, Italy and Ireland remained the most impressive performers. Although there were signs of manufacturing growth cooling in these countries, this was largely offset by a solid acceleration in Germany, suggesting that the region’s industrial powerhouse is taking on more of the growth strain.
“Given the ongoing situation in Greece it was not surprising to see that nation’s manufacturing sector register a further sharp downturn, although a sharp slowing in the rate of contraction raises hopes that the lowest point has been passed. The French industrial sector also remains in the doldrums and is likely to continue to act as a drag on the broader French economy.
“While there remain pockets of strength in a number of national domestic markets, August also saw signs of that being matched by a step up in export demand. Export order inflows rose at a faster pace, although we will have to wait and see if recent concerns regarding a slowdown in China filter through to the figures in coming months.”
