Orders drive manufacturing in the euro area. In August, the sector accelerates and grows at the fastest pace of the last two years. The European recovery is gaining momentum, at least according to the latest Markit data.
New orders are at their highest since May 2011 and the future looks even better. L'Markit's PMI index rises to 51,4 from 50,3 in July, the first month in which the fateful 50 threshold was exceeded - the one that divides contraction and expansion - since February 2012.
“While earnings are still modest, companies have made improvements and all indications are that the recovery will continue in September,” Markit chief economist Chris Williamson told Reuters.
The Eurozone seems to have come out of the recession that lasted a year and a half, with growth of 0,3% in the last four months, supported by the good performance of Germany and France.
Output growth looks set to continue next month as the new orders index rose to 53,3 from 50,8 in July, the highest level since May 2011.
Well there too Greece, whose manufacturing contracted at the slowest pace for 3 years now, fueling hopes that the bottom has already been hit and now has to go back up.
Markit's PMI, which represents about 15% of the Greek economy, rose to 48,7 from 47,0 in July, the highest in 44 months.
And while the Old Continent sees the light, the new promises of the economy begin to falter, confirming the crisis of emerging countries. Indian industry it goes down, for the first time in 4 years, and adds to the problems of New Delhi, already grappling with the free fall of the rupee.
The HSBC PMI index, compiled by Markit, dropped to 48,5 in August from 50,1 in July, the worst result since March 2009. Analysts contacted by Reuters had expected a 49,9. Since May, the index had remained close to 50, the dividing line between contraction and growth. India is dragged down by the collapse in orders.
