Eurozone manufacturing expanded in February for the first time since August last year, supported by a rise in new orders, but inflationary pressures — including higher energy costs — persist.
The HCOB eurozone manufacturing purchasing managers' index (PMI) rose to a 44-month high of 50.8 in February from 49.5 in January. The underlying data were collected between 9-20 February. A reading above 50 signals expansion.
Germany, the eurozone's largest economy, recorded its sharpest improvement in factory operating conditions in nearly four years and returned to growth. But France experienced a slowdown.
"We are not talking about a boom, but a moderate recovery coming from a low activity level amid persisting structural challenges like high energy prices, intense competition from China and US tariffs, among other things," HCOB said.
Oil prices climbed today on rising concerns over supply disruptions as the US-Israel conflict with Iran enters its third day.
