(Boursier.com) – European manufacturing sector “shows signs of recovery” in the beginning of 2015, although the sales growth rate remains low, said the Markit Economics Institute in its latest monthly report published on Monday. The final PMI index is indeed to 51 in January, after 50.6 in December, indicating an expansion in activity (index above 50). However, France is lagging behind.
As best in France, but …
The PMI of the Hexagon, below 50 still reflects a contraction manufacturing activity, although it is recovering (49.2 after 47.5) and is at its highest level in eight months. Tricolor companies remain “face an unfavorable situation marked by persistent weakness in demand,” said Markit. In January, industrial activity also contracts in Italy, Austria or Greece.
The ECB’s stimulus plan threatened by Greece?
In contrast, ” Simultaneous growth in production and new orders are reported in Germany, Spain, the Netherlands and Ireland, “says Markit, which calls for caution, manufacturers of the Eurozone is facing” the double challenge of low domestic markets and sluggish export demand. ” The institute is also concerned that the ECB’s stimulus efforts are compromised by “political developments in Greece”. Recall that Alexis Tsipras, head of the anti-austerity Syriza party won the last election.
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