Create a free Manufacturing.net account to continue

Manufacturing Fuels Fastest Eurozone Economic Growth In Six Years

Two recent indexes showed some of the best numbers in the 19-nation Eurozone in decades.

Countries using the euro currency continued to reflect strong economic activity in recent months, particularly in manufacturing.

The Wall Street Journal reports that two recent indexes showed some of the best numbers in the 19-nation Eurozone in decades.

IHS Markit's Purchasing Managers Index remained at 56.8 in the London firm's latest monthly survey of 5,000 companies.

That level, unchanged from April, indicated the largest expansion in the Eurozone's economy in six years. A PMI above 50 reflects stronger economic activity.

The IHS Markit results for May also indicated that manufacturing paced the region's overall economy. The Eurozone's manufacturing output grew at its fastest pace in more than six years, while the manufacturing workforce expanded at the best rate in the 20-year history of the survey.

Economic growth was particularly strong in France and Germany; the poll followed an April report from the Ifo Institute that showed the highest business optimism in Germany in 26 years.

"Job creation has surged to the second-highest rate in nearly a decade as firms seek to expand capacity and meet rising demand," said IHS Markit chief business economist Chris Williamson.

The Journal noted that the promising numbers followed election wins by pro-euro candidates in France and the Netherlands.

Better indicators, however, are also likely to increase calls for the European Central Bank to ease economic stimulus measures.

More in Supply Chain