Manufacturing is picking up all over the globe. China’s manufacturing grew at the fastest pace in two years in January and the Euro area’s services and factory output areas declined less than anticipated.
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The euro-area composite index rose to 48.2 from 47.2 in December. Economists and analysts had forecast a rise of 47.5. Markit’s factory survey showed China’s manufacturing growth at 51.9 from 51.5 in December.
Mario Draghi, president of the European Central Bank (ECB), cited the numbers as evidence the worst of the economic crisis is over.
The sense that Europe’s economy has, at least, reached a turning point follows gains in the financial markets that are not fully being reflected in economic reports.
European consumer confidence is expected to gradually build from here. But unemployment is expected to be stubborn and to possibly rise slightly well into 2014.
The International Monetary Fund (IMF) predicted another year of slow growth in Europe in its semi-annual report on January 23.
China’s manufacturing data indicates its growth rate for January
will at least match or slightly exceed its 7.9% growth rate in December.