Eurozone factories expanded at the fastest rate in five months in January as the manufacturing sector gained steam.
Source: IHS Markit
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IHS Markit posted that production, new orders, and employment all expanded at a faster pace, alongside improved signs that supply chain constraints are starting to ease.
The final Eurozone Manufacturing PMI stood at 58.7 in January, an increase from 58 in December, signaling faster growth.
The increase in PMI is attributable to faster expansions in output and new orders. Employment growth also expanded to a five-month high.
Chris Williamson, the chief business economist at IHS Markit, stated that eurozone manufacturers appeared to be handling the Omicron variant wave better than the initial COVID-19 waves.
Austria had the strongest-growing manufacturing sector in January as faster expansions were also posted in Germany, Netherlands, and Ireland.
Manufacturing growth in Spain was strong and remained unchanged from December slower improvements were reported for Italy, France, and Greece.