Time.news – In March, the recovery of the manufacturing sector gains further strength in the Eurozone, with SMEs flying to the top for 24 years and Italy growing at the highest rates of the last 21.
At all-time highs in Europe all three are sub-indices: new orders, exports and purchasing activities. Growth was general across the region, with Germany and the Netherlands at the top of the table, at record highs of 66.6 and 64.7 points, respectively. Austria also reported a particularly strong performance (63.4 points), while in Italy and France the growth rate was the best in 21 and 20.5 years, respectively (at 59.8 and 59.3 points). . Greece is at the bottom at 51.3 points, in any case above the threshold of 50 points that separates the phases of expansion from those of contraction of the economy.
Ihs Markit today also released the data on the SMEs of China and Japan, and there is expectation for the US one in the early afternoon. In Beijing, the Caixin index stood at 50.6 points in March after 50.9 in February: the lowest since April 2020, when the Chinese economy was emerging from the pandemic, but still above 50 points. In Japan, the PMI for the manufacturing sector rose in March to 52.7, the highest level since October 2018, after 51.4 in February and against a preliminary estimate of 52 points. Here are the details of the main European economies.
Italy, SMEs rise to 59.8 points from 56.9
The seasonally adjusted PMI Ihs Markit index of the Italian manufacturing sector in March recorded 59.8 points, up from 56.9 in February and reported the greatest improvement in operating conditions in 21 years. The figure is in line with analysts’ expectations. This is the expansion of production and new orders at the fastest rates in over three years. Furthermore, optimism remains high, and increases job creation.
“March data highlighted theyet another acceleration of the recovery of the Italian manufacturing sector – commented Lewis Cooper, Economist of Ihs Markit, analyzing the latest data of the survey – both production and new orders have seen the greatest expansion in over three years, and the sample companies have reported growing sales and better demand from of customers. Consequently, to cope with the increased workload, manufacturing companies have added additional staff and optimism has remained high “.
However, he notes, “inflationary pressures continue to increase, purchase costs indicated the fastest increase in nearly a decade, causing near-record selling price inflation as companies tried to maintain their margins. The cause of the cost increase cited mainly is linked to delays in the supply chain, the average delivery times, in fact, have lengthened to the highest level since the pandemic peak of last April “.
Germany, SMEs rose to 66.6 points from 60.7
The Pmi manufacturing index detected in March by Ihs Markit in Germany jumps to an all-time high of 66.6 points, from 60.7 in February and above the previous high of December 2017 (63.3).
“The German manufacturing SME celebrated its 25th anniversary in March with a record reading of 66.6, showing the manufacturing sector is strengthening – commented the economist of IHS, Phil Smith – was a a record month on many fronts, including on that of new export orders, which benefited from synchronized increases in sales in the United States and China and saw an unprecedented number of reports of growth from German producers “.
However, the expert notes, “the blockade of the Suez Canal it couldn’t have come at a worse time, with more than three-quarters of producers already reporting increasing delivery times on inputs in March, with the potential for further growth held back by the shutdown of containers, with expected congestion in ports in the coming days and weeks “.
France, SMEs rose to 56.9 points from 52.2
The manufacturing PMI index of France in March rose to 56.9 points from 52.2 in February, clearly above the 50-point threshold that separates the phases of expansion from those of contraction of the economy. This is the strongest increase in French industry since September 2000. Analysts had expected a more contained rise to 58.8 points.
Great Britain, SMEs rose to 58.9 points from 55.1
In the United Kingdom, the manufacturing PMI index rose to its 10-year top in March, reaching 58.9 points from 55.1 points in February. This is the tenth consecutive monthly increase. The driving forces were the new orders, the speed of vaccinations and the easing of lockdowns.
Spain, SMEs rose to 56.9 points from 52.2
Spain’s manufacturing SME index in March rose to its top since the end of 2006 and advanced to 56.9 points from 52.2 in February, clearly above the 50-point threshold that separates the phases of expansion from those of contraction. ‘economy.
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