LONDON, Feb 1 (Reuters) – Euro zone manufacturing growth remained steady at the start of the year but the pace of December slipped as renewed lockout across the continent, coupled with supply shortages, strenuous activity , research showed.
With coronavirus infections on the rise again in Europe countries have forced large areas of the blockchain service industry to close their doors, leaving manufacturing to support the economy as factories have remained partially open. large.
IHS Markit Manufacturing Purchasing Managers ’(PMI) last index fell to 54.8 in January from December 55.2, although slightly higher than the initial“ flash ”estimate of 54.7.
“Eurozone manufacturing output continued to expand at a rapid pace at the beginning of 2021, although growth has weakened to its lowest level since recovery began as new lock-in measures and supply shortages pose further challenges for producers on across the region, ”said Chris Williamson, chief business economist at IHS Markit.
An index measuring output, which feeds into Wednesday’s mixed PMI seen as a good measure of economic health fell to 54.6 from 56.3, still comfortably above the 50 mark separating growth from shortening.
But with much of the service industry likely to remain closed for some time the bloc’s economic outlook remains bleak and it will take up to two years for GDP to reach pre-COVID-19 levels, a Reuters poll found last month.
Restrictions meant that subprime measure delivery times had sunk to 31.6 from 34.4, indicating that factories were struggling to get the raw materials they needed. The index has only been lower once since the study began in mid – 1997 and was at the height of the pandemic last year.
“At the same time, supply shortages have put price power in the hands of suppliers, pushing raw material prices much higher. Increased travel costs are adding to the burden, ”said Williamson.
Despite rocket entry costs factories increased their own prices at a shallower rate than in December.
However, with the hope that the vaccines being rolled out will allow them to return to regularity, hopes have soared about the coming year to a three – year level. (Reporting by Jonathan Cable; Editing by Toby Chopra)