This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-16831344

The article has changed 9 times. There is an RSS feed of changes available.

Version 3 Version 4
Eurozone manufacturing contraction eases Eurozone manufacturing contraction eases
(about 1 hour later)
The eurozone's manufacturing sector contracted for the sixth month in a row in January, a closely-watched survey has indicated, although the rate of contraction slowed.The eurozone's manufacturing sector contracted for the sixth month in a row in January, a closely-watched survey has indicated, although the rate of contraction slowed.
Markit's purchasing managers' index (PMI) for the eurozone rose to 48.8, up from December's figure of 46.9.Markit's purchasing managers' index (PMI) for the eurozone rose to 48.8, up from December's figure of 46.9.
However, a reading below 50 still implies that the sector shrank.However, a reading below 50 still implies that the sector shrank.
The survey found German manufacturing returned to growth, while the declines in Spain and Italy slowed.The survey found German manufacturing returned to growth, while the declines in Spain and Italy slowed.
"Euro area manufacturing has started 2012 surprisingly well, suggesting the region may avoid a slide back into recession," said Chris Williamson, chief economist at Markit."Euro area manufacturing has started 2012 surprisingly well, suggesting the region may avoid a slide back into recession," said Chris Williamson, chief economist at Markit.
"The latest survey readings suggest that conditions in the euro area manufacturing sector have begun to stabilise in recent weeks after a difficult end to 2011," said James Ashley at RBC."The latest survey readings suggest that conditions in the euro area manufacturing sector have begun to stabilise in recent weeks after a difficult end to 2011," said James Ashley at RBC.
"Output in January was slightly stronger than in December, and employment levels were unchanged on the month."Output in January was slightly stronger than in December, and employment levels were unchanged on the month.
The more optimistic data was reflected in the major European stock markets.
At lunchtime, Germany's Dax index was up more than 2%, while the UK and French markets were about 1.5% higher.
They were also helped by better-than-expected figures showing an expansion in Chinese manufacturing activity.
'Shallow recession'
Germany's PMI reading rose to 51, the highest level for six months.Germany's PMI reading rose to 51, the highest level for six months.
In Italy, the manufacturing PMI reading rose to 46.8, the best reading for four months, while in Spain the reading of 45.1 was the highest for five months.In Italy, the manufacturing PMI reading rose to 46.8, the best reading for four months, while in Spain the reading of 45.1 was the highest for five months.
However, in France the reading fell to 48.5, and Greece's level of 41 implied that production there was falling at the fastest pace in the survey's history, Markit said.However, in France the reading fell to 48.5, and Greece's level of 41 implied that production there was falling at the fastest pace in the survey's history, Markit said.
Gilles Moec, co-head of European economic research at Deutsche Bank, said: "The rebound in the PMI strengthens a 'shallow recession scenario'. That the periphery also rebounded in January is probably the best message from this batch."Gilles Moec, co-head of European economic research at Deutsche Bank, said: "The rebound in the PMI strengthens a 'shallow recession scenario'. That the periphery also rebounded in January is probably the best message from this batch."
However, the Markit survey also found that new orders declined in all eurozone nations except for Austria.However, the Markit survey also found that new orders declined in all eurozone nations except for Austria.
"The concern is that new orders have yet to return to growth, even in Germany, suggesting that companies will be reluctant to expand capacity and take on more staff until signs of stronger demand have appeared," Mr Williamson said."The concern is that new orders have yet to return to growth, even in Germany, suggesting that companies will be reluctant to expand capacity and take on more staff until signs of stronger demand have appeared," Mr Williamson said.