According to a survey by The Markit Purchasing Managers’ Index (PMI), the eurozone’s manufacturing sector ended 2010 enjoying strong growth.
The survey recorded a level of 57.1 for December, which is up from an earlier estimate of 56.8 and above November’s 55.3.
A reading higher than 50 indicates growth, which is a level that eurozone PMI has now remained above for 15 months in a row. Growth was highest in Germany, and showed ‘marked improvement’ in Italy, with Greece showing the least improvement.
Chief economist at Markit, Chris Williamson said “Manufacturing output growth gathered pace again in December, putting the sector on a strong footing to start the New Year.”
Employment rose for the seventh month in a row, with the rate of job creation rising markedly from the disappointing pace seen in previous months. The December increase was the largest since February 2008. Manufacturers added jobs at the strongest rate since July 2007 while service sector employment growth was the strongest since February 2008.
So what does this mean for the rest of the economy in 2011? Well, it’s just the beginning but this does suggest significant improvement for Europe in the race to climb out of the recession.