Eurozone PMI Manufacturing was finalized at 49.2 in February, up from January’s 47.9. Markit noted that output and new orders declined at slower rates. Average lead times lengthened market as firms utilized inventories. Looking at the member states, readings in France (49.8), Italy (48.7) and Germany (47.8) remained in contraction. Though, Greece hit 10-month high at 56.2 and the Netherlands hit 13-month high at 52.9.
Chris Williamson, Chief Business Economist at IHS Markit said: “February saw encouraging signs that the eurozone’s manufacturing downturn is easing. Production contracted at the slowest rate for nearly a year and, despite lost export sales, new orders fell at the weakest rate for 15 months amid signs of rising internal demand, notably from consumers.”
But he warned that “any further spreading of the COVID-19 epidemic risks driving increased risk aversion and a reduction of spending by both businesses and consumers.”
