Eurozone Manufacturing Growth Resilient Despite Falling Slightly in January

Eurozone Manufacturing PMI fell to 54.8 in January, slightly below December’s 55.2, according to the IHS Markit press release. January’s PMI was a seventh successive month of expansion and among the highest seen over the past two-and-a-half years.

• Eurozone recorded growth across all the broad market groups, although the improvement in the consumer goods was marginal.
• Netherlands led the manufacturing as it marked the sharpest expansion in over two years, followed by Germany, with only Spain recording a contraction.
• Manufacturing companies faced capacity pressures as the backlog orders grew in January.
• Supplier delivery times deteriorated for a twelfth successive month, which pushed input prices higher. 
• Overall business confidence for the next 12 months improved to a three-year high on hopes of vaccine developments and easing of pandemic restrictions. 

European stocks are currently gaining as the Euro loses. DAX is up 1.42%, EURUSD is down 0.41%