Eurozone manufacturing slump eases more than expected

Eurozone's manufacturing sector contracted at a slightly weaker pace than estimated earlier in February, final data released by Markit Economics showed Friday.

The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector came in at 47.9 in February, which was unchanged from January's 11-month high. The latest reading was slightly higher than 47.8 seen in the preliminary estimates. A PMI stayed below the no-change 50 mark - which separated growth from contraction -for the nineteenth successive month.

The modest easing of decline in activity partly reflects the stabilization of the German manufacturing sector and a an increase in activity in Ireland, which stayed at the top of the PMI league. However, all other member countries recorded contraction, with Italy, France, Spain and Greece recorded marked downturns.

Both production and new orders in the euro area manufacturing sector contracted further in February, although the rates of decline were less marked than signaled by the earlier flash estimates.

Employment fell for the thirteenth successive month, albeit at a slightly weaker pace than in the prior month. Input costs declined for the first time in six months, while factory gate prices were broadly unchanged.