Eurozone manufacturing grew at its strongest pace in over six years in May, alleviating fears of a slowdown in the wake of Brexit.
The Eurozone’s final factory PMI figure for May stood at 57.0, up from 56.7 in April and its highest level since April 2011. Any figure above 50 represents expansion.
Price increases failed to slow their new orders, the survey showed, despite the continuation of strong inflationary pressures. The positive figure means the bloc’s economy is enjoying a stable and broad-based recovery, which will be welcomed by policymakers at the European Central Bank.
“The euro zone upturn is developing deeper roots as factories enjoy a spring growth spurt,” said Chris Williamson, chief business economist at IHS Markit.
“Demand for goods is growing at the steepest rate for six years, encouraging manufacturers to step up production and take on extra staff at a rate not previously seen in the two-decade history of the PMI survey.”
Germany’s manufacturing sector led the Eurozone’s progress, with growth at a 73-month high. Most other eurozone countries also posted growth, aside from Greece who saw yet another contraction as it struggles to deal with further austerity measures.