Eurozone manufacturing reaches record high in December

Eurozone ends 2017 on a high amid record manufacturing growth. Manufacturing PMI for the Eurozone rose to the record high of 60.6 in December according to a flash estimate from HS/Markit research.

With services activity rising to the highest level in last 80- months at 56.5 in December, the composite PMI rose to 58.0, the highest reading in 82 months.

Key quotes from Chris Williamson, Chief Business Economist at IHS/Markit:

• "The eurozone economy is picking up further momentum as the year comes to a close, ending its best quarter since the start of 2011. The PMI is signaling an impressive 0.8% GDP increase in the fourth quarter, with accelerating growth seen in both Germany and France, where fourth-quarter growth rates of 1.0% and 0.7-0.8% are indicated respectively."
• "France has been the big surprise this year, rapidly pulling out of its malaise to help shift the eurozone expansion into a higher gear."
• "The eurozone upturn is being led by a booming manufacturing sector, with a record PMI seen in December, but stronger domestic demand is also helping drive faster service sector growth."
• "Demand in the region’s home markets is being buoyed by the improved labor market, with new jobs being created at a pace not seen for 17 years over the past two months."
• "A revival in business confidence about the year ahead highlights how companies are shrugging off political uncertainty and instead focusing on the improving demand environment, setting the scene for a good start to 2018. “Although price pressures abated slightly in December, the robust growth of demand and tightening labor market hint at rising core inflationary pressures as we move through 2018."