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By HaleStewart March 3, 2014 8:15 am
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Markit Manufacturing Data Points to EU Growth

Today Market released the final manufacturing numbers for the EU.  The report made the following general observation about the region:

At 53.2 in February, the final seasonally adjusted Markit Eurozone Manufacturing PMI® came in above the earlier flash estimate of 53.0. Although indicating a modest slowdown in the rate of expansion from January’s 32-month high, this still confirmed that the manufacturing recovery had completed its eighth successive month. 

Here is a graph of the relevant data:

I've circled the positive growth areas in green, which includes almost all the major countries surveyed, save for France, who's number is just barely negative 49.7.

The real question posed by this data is this: is it enough -- in and of itself -- to begin pulling the EU economy into growth strong enough to begin lowering the very high unemployment rate of 12%?  According to analysis provided in the report, the numbers indicates industrial production should be growing at a 1% pace in the 1Q14, lifting GDP with it.  As I noted in my weekly international economic roundup, the EU still has some very negative economic numbers to overcome. 

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer

 

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