Not very encouraging signals are coming from European industry. According to Markit's calculations, in January the PMI manufacturing index relating toEurozone it fell to 52,3 points, from 53,2 in December. However, for the 31st consecutive month, the figure remains above the threshold of 50 points, which marks the boundary between growth and contraction.
Markit's PMI manufacturing index scores forItaly a drop from 55,6 in December (which had been a 57-month high) to 53,2 in January. This is the lowest in four months, but the index was only slightly below the 2015 average (53,7).
However, manufacturing companies have maintained a high level of job creation, explains Markit, by increasing the employment level of the sector for the thirteenth consecutive month. The survey also showed a steeper and faster fall in average input prices which in turn contributed to the renewed decline in average selling prices.
The growth rate of production, despite the collapse in January, remained generally high with growth observed in producers of consumer, intermediate and investment goods. The level of growth in new orders also slowed to its slowest since September, partly due to the slowdown in exports.
According to Markit, the data shows that the Jobs Act "is having a positive influence on companies' willingness to hire." The January survey showed a steep and accelerating fall in average input prices, the second fastest recorded in the last 32 months.
as to Germany, the German manufacturing sector continues to grow but slows down to October levels. Germany's manufacturing PMI fell to 52,3 points in January from 53,2 in December. Production growth and new orders slow down.
In Britain, however, the indicator recorded an increase in January to 52,9 from 52,1 in December. This is the highest level for three months. The index has remained above the symbolic threshold of 50 points for 34 consecutive months.
Outside Europe, the PMI manufacturing index Japanese it settled at 52,3 points from 52,6 in December, while that Chinese fell sharply in January, hitting a three-year low. According to the Beijing government index released today, the PMI index fell to 49,4 in January, compared to 49,7 in December, the lowest since August 2012.
