Manufacturing across the euro zone grew at the fastest rate in more than six years during May, increasing activity as price increases failed to slow their new orders, a survey showed on Thursday. Ciara Lee reports.
More good news for factories in the euro zone. Manufacturing across the bloc growing at its fastest rate in more than six years during May IHS Markit's index for the euro zone rose to 57 in May, up from April's 56.7 A figure of 50 indicating growth. (SOUNDBITE) (English) NEIL WILSON, SENIOR MARKET ANALYST, ETX CAPITAL, SAYING: "The euro zone is doing very well the recovery seems to be bobbing along very nicely. We've got a PMIs at six year highs and I think really the euro zone is considered one bright spot at the moment in the global economy." Germany, Europe's largest economy, led the charge. Output, new orders and employment all rose at the fastest rate in around six years. Growth in new export business reached its highest level in seven. Solid upturns recorded in other countries too. France lagged behind but is still enjoying its best quarter for six years. (SOUNDBITE) (English) NEIL WILSON, SENIOR MARKET ANALYST, ETX CAPITAL, SAYING: "We're seeing the French really turning things around. Whether or not that's got to do with the presidential election and the arrival Macron, there's another matter. I think we've seen the French economy sort of turning around slowly over time anyway." Signs the bloc's enjoying a stable recovery will be welcomed by policymakers at the ECB. The bank's expected to signal a move away from its ultra-easy monetary policy by September Making some nervous. (SOUNDBITE) (English) NEIL WILSON, SENIOR MARKET ANALYST, ETX CAPITAL, SAYING: "If QE the QE rug was pulled out from underneath the euro zone then things could start to falter and I think that's what we see with Mario Draghi and the ECB remaining still very very cautious despite all this good data. We're not seeing inflation pick up." Manufacturers taking part in the survey pointed to strong demand from Asian customers With domestic demand for industrial goods also solid.