Europe Manufacturing Accelerates More Than Estimated

Growth in Europe’s manufacturing industry accelerated more than previously estimated in July, indicating an export-led recovery maintained its momentum.

A gauge of manufacturing in the 16-nation euro region increased to 56.7 from 55.6 in the previous month, London-based Markit Economics said today. That’s a three-month high and above an initial estimate of 56.5 released on July 22. A reading above 50 indicates expansion.

European manufacturers have helped support the region’s recovery by stepping up output to meet global export demand. Volkswagen AG, Europe’s largest carmaker, on July 29 reported its biggest quarterly profit in two years. Still, Chinese manufacturing growth slowed in July and U.S. factory output probably also weakened, suggesting exporters may struggle to maintain their earnings growth.

For more: Europe Manufacturing Accelerates More Than Estimated - BusinessWeek

Dutch Manufacturing Sees Solid Growth

Dutch manufacturing activity slowed modestly in June but the sector remains in sound health, survey data shows.

Marked Economics announced that the NEVI manufacturing purchasing managers’ index stood at a seasonally adjusted 55.9 in June. A reading above 50 indicates expansion, while one below suggests contraction.

Dutch manufacturing output rose in June, although more slowly than in the previous seven months. This was fueled by a rise in the intake of new orders. Respondents cited demand from the external sector, which was aided by the weak euro, for the faster rise in new work.

For more: Dutch Manufacturing Sees Solid Growth | Daily Markets

Bloomberg.com: European Economy - Europe Services, Manufacturing Contracted in January

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European Economy - Europe Services, Manufacturing Contracted in January

Europe’s manufacturing and service industries contracted for an eighth month in January as the global recession curbed demand for exports and damped spending. A composite index of both industries was at 38.5 compared with 38.2 in December, which was the lowest reading since the survey began in 1998. Economists forecast a decline to 37.4, according to the median of 15 estimates in a Bloomberg survey. The index is based on a survey of purchasing managers by Markit Economics and a reading below 50 indicates contraction. Companies are scaling back production and cutting jobs as global demand wanes. Europe’s gross domestic product will drop 1.9 percent this year, the European Commission forecasts.

While the rise in the purchasing managers’ index “provides a glimmer of hope that the rate of economic contraction may have peaked at the end of last year,” its level is “still consistent with a sharp drop in GDP,” said Chris Williamson, chief economist at Markit.

NYT: Manufacturing Cools Around the World - by Bettina Wassener

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Manufacturing Cools Around the World - by Bettina Wassener

From Australia to Asia and Europe to the United States, the message on Wednesday in the latest economic reports was clear: manufacturing continued to slump amid the worst slowdown since the Great Depression. In Europe, a closely watched index of purchasing managers showed manufacturing hit a low in December, falling to 33.9 from 35.6. Any reading above 50 signals growth, while a reading below 50 indicates contraction in manufacturing. Similarly grim readings in Australia, China and India highlighted how the Asia-Pacific region has become caught up in the global turmoil. In China, the purchasing managers’ index by the brokerage firm CLSA showed the manufacturing sector had contracted for a fifth consecutive month. The survey showed the steepest decline in its history.