January 3 (Reuters) – Main final results of Markit surveys of purchasing managers in manufacturing in Europe, released on Monday:
EURO ZONE – LESS TENSIONS IN THE SUPPLY CHAINS
LONDON – Growth in manufacturing activity in the euro area remained strong in the last weeks of 2021, with industrial companies benefiting from easing tensions in supply chains, final survey results show. ‘IHS Markit.
The manufacturing PMI for the region as a whole fell to 58.0 from 58.4 in November, in line with the first estimate released on December 16, but it remains well above the 50 threshold between contraction and expansion.
An index measuring the evolution of production, which enters the calculation of the composite PMI expected Wednesday, also remained stable at 53.8. That of purchase prices remained high but fell to an eight-month low, at 86.7 after 88.9.
“The easing of inflationary pressures is also a welcome signal, but we remain in an area of tension,” comments Joe Hayes, senior economist at IHS Markit.
GERMANY – HOPES FOR IMPROVEMENT IN SUPPLY CHAINS
BERLIN – Supply chain bottlenecks weighed on industrial activity in Germany again in December, but companies in the sector say they are confident about 2022, the IHS Markit survey shows.
The sector’s PMI index was unchanged at 57.4 while the provisional results published on December 16 gave it up to 57.9.
“Supported by full order books, German manufacturers are confident in the growth prospects for the coming year, although a lot depends on improving the situation on the supply side,” says Phil Smith , economist and associate director of IHS Markit.
FRANCE – LESS THAN EXPECTED SLOWDOWN IN GROWTH
PARIS – Growth in the French manufacturing sector has slowed less than initially estimated in December, with new orders still trending upward and the disruptions affecting supply chains tending to ease, show the final results of the ISH Markit survey.
The manufacturing PMI fell to 55.6 from 55.9 in November, while the “flash” estimate was 54.9.
“The December PMI survey gives us some reason to be a little more optimistic about the manufacturing sector,” comments Joe Hayes, senior economist at IHS Markit. “Manufacturers expect their order books to start filling up much faster as the supply side improves.”
ITALY-GROWTH IS SLOWING BUT REMAINS STRONG
ROME – The growth of industrial activity in Italy maintained a strong pace in December despite a slight slowdown, with the economy continuing to rebound despite the epidemic, shows the IHS Markit survey.
The manufacturing PMI index fell to 62.0 after the record 62.8 recorded in November, but it remains well above the threshold of 50 above which it reflects an expansion of activity.
The new orders sub-index is on the same trend, at 63.0 after 63.7 the previous month.
SPAIN-INDUSTRY GROWTH AT LOWEST SINCE FEBRUARY
MADRID – Growth in activity in Spain’s manufacturing sector fell in December to its weakest pace in ten months against a backdrop of accelerating inflation and bottlenecks in supply chains, shows the ISH Markit survey.
The manufacturing PMI index fell to 56.2 from 57.1 in November.
“The price indices remain extremely high, the companies evoking strong inflationary pressures which have an unfavorable impact on the demand of their customers”, explains Paul Smith, economist of the research company.
(Reuters offices, French version Marc Angrand, edited by Blandine Hénault)
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