(IHS Markit) Eurozone opened the year with robust manufacturing activity, as PMI rose to 58.7, a five-month high and above December’s final reading of 58.0.
Growth was highest in Austria, which registered a 4-month PMI reading of 61.5, followed by the Netherlands, Germany, and Ireland. Growth in Spain remained unchanged and fell to a three-month low in France.
The gains in manufacturing happened even as the overall supply chain issues showed signs of slowing down. Vendor performance fell to the lowest in 12 months.
Backlogs accelerated as outstanding businesses grew sharply to a rate higher than the historical average.
Job creation increased at the fastest since August and was among the quickest in over two decades as firms hired to clear unfulfilled orders.
Input prices also eased to hit the weakest in nine months, although output charges rose at the second-fastest rate on record.
The Eurozone is now seen to face headwinds emanating from the tensions in Ukraine, prospects of central bank policy tightening, and the energy crisis.
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