KABUL (Pajhwok):A new survey shows that manufacturing activity in the eurozone expanded in August at its fastest pace in more than four years. At the same time, preliminary data indicate that the region’s annual inflation rate rose from 2.9 percent to 3.3 percent.
Reuters reported that, according to a survey by S&P Global, the eurozone Manufacturing Purchasing Managers’ Index (PMI) increased to 52.7 in August from 51.9 in July.
The report said this was the highest reading since May 2022. A PMI reading above 50 indicates expansion in manufacturing activity.
The eurozone consists of 21 European Union member states that use the euro as their official currency.
According to the report, factories received more new orders in August, while export orders increased for only the second time in the past four and a half years after a prolonged period of decline, suggesting stronger overseas demand for goods produced in the region.
The report added that the factory output index rose from 52.9 in July to 53.3 in August, its highest level in 54 months.
Joe Hayes, chief economist at S&P Global Market Intelligence, said the August figures show that the eurozone’s industrial sector continued to expand despite higher oil prices and supply chain disruptions linked to the conflict in the Middle East.
According to the report, Germany recorded its strongest manufacturing growth in more than four years, while France also contributed to the region’s overall expansion. However, manufacturing activity declined in Italy and Spain.
Meanwhile, the European Union’s statistics agency Eurostat said in its preliminary estimate that annual inflation in the eurozone rose to 3.3 percent in August, up from 2.9 percent in July.
The report noted that inflation remains above the European Central Bank’s two-percent target.
