Eurozone Manufacturing Sector Continues To Expand

The Euro area manufacturing sector expanded in February with growth in both output and new orders gaining further momentum following improvements in January, final survey data from IHS Markit showed on Tuesday.

The manufacturing Purchasing Managers' Index fell to 58.2 in February from 58.7 in the previous month.

The flash reading was 58.4. A score above 50.0 indicates expansion in the sector.

"Don't let the drop in the headline PMI distract from what should be viewed as a largely positive month for the euro area manufacturing sector in February," Joe Hayes, a senior economist at IHS Markit said.

grew at the fastest pace since last September. New orders grew sharply and at the quickest pace in six months. Manufacturers raised their employment levels.

There were also fewer supplier delivery delays across the month, with lead times lengthening to the weakest extent for just over a year.

Although the rates of both input cost and output price inflation slowed in February, they were among the fastest on record.

Among big-four nations, Germany posted the strongest growth. Italy also logged stronger expansion. Spain was the weakest- growing of the monitored euro area nations, followed by France.

The headline IHS Markit/BME Germany manufacturing PMI remained firmly above the 50.0 mark separating growth from contraction. But at 58.4, the index was down slightly from January's five-month high of 59.8. The flash reading was 58.5.

France's manufacturing PMI increased to a six-month high of 57.2 in February, from 55.5 in January. But the score was below the preliminary 57.6.

Italy's factory PMI posted 58.3 in February, unchanged from January's reading, to signal a twentieth consecutive monthly improvement in the health of the Italian manufacturing sector and one that was sharp overall. The score was forecast to fall to 58.0.

Spain's manufacturing PMI improved to a three-month high in February, reaching 56.9 and up from 56.2 and the economists' forecast of 56.1.