Economic recovery is in the air and it is becoming a reality in companies. This is demonstrated by the PMI manufacturing index in Europe, released on Thursday morning by IHS Markit. The index for Italy reached 59,8 in March, the highest level in 21 years, from 56,9 in February. “The data for March – specifies the press release from the study center – highlighted a further acceleration of Italian manufacturing. Both production and new orders experienced the fastest expansions in over three years, with sales gains driven by improved demand."
The positive data is evident. “Companies have continued to hire staff to cope with workloads, while business confidence has remained robust. Inflationary pressures have continued to mount,” explained Lewis Cooper, an economist at IHS Markit. “It is fair to say that the manufacturing recovery is well underway. If demand conditions remain strong, we are likely to see a sustained recovery in the coming months,” he added.
Looking at the European panorama, the PMI in Germany rose to a record 66,6 in March from 63,3 in February, in line with the preliminary estimate. “It was a record month on many fronts, including new export orders, which benefited from recovering sales in the US and China and saw an unprecedented number of German producers registering increases.
However, the blockade of the Suez Canal could not have come at a worse time,” said Phil Smith, chief economic officer at IHS Markit. “We are eagerly awaiting the PMI data for April to see the impact it will have, also on production prices”. France recorded a 59,3 and in the Eurozone the index jumped to 62,5 from 57,9 in February, just above the preliminary estimate of 62,4. There were record increases in production, new orders, export and purchasing activity, but i supply-side delays – in terms of supply and raw materials – have led to an increase in input costs. “The improvement trend is widespread throughout the area with the increase in domestic demand and the recovery of exports; business confidence improved markedly, with growth expectations reaching record levels in February and March. Investments are increasing as companies prepare for even stronger demand after the vaccination plan ”.
