European Manufacturing Grows Fastest in a Decade

European Manufacturing Grows Fastest in a Decade

European manufacturing growth accelerated to the fastest pace in more than 10 years in February, a further sign the economy is gathering strength.

A gauge of manufacturing in the euro region rose to 59 last month from 57.3 in January, London-based Markit Economics said in an e-mailed report today, confirming a Feb. 21 estimate. That’s the highest since June 2000. A reading above 50 indicates expansion.

European manufacturers have helped bolster the region’s economic growth as export growth countered the impact of austerity measures on consumer demand. Peter Bauer, chief executive officer at Infineon Technologies AG (IFX), said on Feb. 17 that Europe’s second-largest chipmaker is “firing on all cylinders” and that the “volume of orders is excellent.”

“Having slowed late last year, manufacturing production growth has revived to a pace even stronger than the 3.3 percent quarterly rate seen at the peak last May,” Chris Williamson, chief economist at Markit, said in the report. “Especially encouraging is the indication that growth is picking up in the region’s periphery, led by rising exports.”

The International Monetary Fund said on Jan. 25 that the world economy may expand 4.4 percent this year with the euro region growing 1.5 percent and the U.S. 2.5 percent. In “many emerging economies, activity remains buoyant,” the Washington- based IMF said.

European confidence in the economic outlook jumped to the highest in more than three years in February, a report showed Feb. 24.

source: bloomberg.com