Data from IHS Markit showed Thursday that Eurozone manufacturing growth came in at 52.2 in November, above forecasts at 51.8. The Eurozone manufacturing activity expanded at the fastest pace in 34 months in November. The final Purchasing Managers' Index rose to 53.7 in November from 53.5 in October, remained unchanged from the flash estimate.
The PMI data showed Eurozone manufacturing remained in expansion (above the stagnation mark of 50.0) for the 41st successive month. Operating conditions improved to the strongest levels since the start of 2014, underpinned by further growth in production volumes, rising staffing levels and stronger inflows of new work.
Growth led by the Netherlands, Austria, Spain and Germany. Netherlands PMI hitt a 35-month high, the Austrian PMI a 66- month record and the German PMI remaining close to October’s 33-month peak. Spain, Italy and Ireland also signalled stronger rates of expansion, while growth slowed slightly in France.
Job creation was seen for the twenty-seventh month in a row, with staffing levels raised in all eight of the nations covered by the survey. However, increased employment failed to prevent a further rise in backlogs of work in November. Outstanding business accumulated at one of the quickest rates since early-2011.
“While the ECB looks poised to extend its quantitative easing programme at its December meeting, the upturn in growth and inflationary pressures will further fuel talk of whether we could see the ECB start tapering its asset purchases next year,” said Chris Williamson, chief business economist at IHS Markit.
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