Eurozone manufacturing PMI rises to one-year high in February

According to the report from IHS Markit, operating conditions in the eurozone's manufacturing sector continued to worsen during February, but only marginally and at the weakest rate for the past year.

The IHS Markit Eurozone Manufacturing PMI, which is adjusted for seasonal factors, recorded 49.2 in February, up from January's 47.9 and slightly above the earlier flash reading. Economists had expected an increase to 49.1. Although the PMI has now recorded below the 50.0 no-change mark for 13 months in succession, February's reading marked not only a one-year high, but also a second successive monthly rise in the index. Latest data indicated that two market groups registered a deterioration in operating conditions in February. Investment goods producers registered

Euro area wide manufacturing production and new orders both remained inside negative territory during February, although rates of contraction were the weakest in nine and 15 months respectively. In contrast, export trade fell at a sharper rate to extend the current run of continuous contraction to just under a year-and-a-half.

On the jobs front, staff numbers were reduced for a tenth successive month. The rate of contraction was solid, albeit weaker than those seen around the turn of the year, as firms responded to reduced workloads by seeking to cut any excess capacity.

Finally, having reached a near one-and-a-half year high during January, business confidence was slightly lower in the latest survey period.