Manufacturing activity in the eurozone expanded for the first time in six months in February, according to a survey published this morning. The eurozone manufacturing sector purchasing managers' index (PMI) rose to 50.1 in February from 49.3 in January, where a reading above 50.0 indicates expansion and below, contraction. The reading was higher than the 49.5 that had been expected. Meanwhile, in Germany, the manufacturing also showed some improvement in February, although it failed to cross the 50.0 threshold into expansion. The PMI rose to 49.9 from 48.3, better than the 48.5 reading forecast.
In France, the PMI rose to 51.5 from 50.0, while in Italy, the index slipped marginally, although it remained above the 50.0 indicating expansion. Earlier, NCB reported that Ireland's manufacturing PMI fell to 48.3 in February from 48.8 in January, remaining under 50.0 from the fifth month in a row. It also indicated that Irish manufacturers cut jobs for the sixth month in a row, amid weaker demand from Europe and rising input costs. The average prices paid by firms rose in February for the eleventh consecutive month.// www.fxcentre.com