LONDON: Eurozone factory activity growth surged to a record high in April, boosted by burgeoning demand and driving a rise in hiring, although supply constraints led to an unprecedented rise in unfulfilled orders, a survey showed.
While a third wave of coronavirus infections in Europe has forced some governments to shutter much of their dominant service industries, factories have largely remained open.
IHS Markit’s final Manufacturing Purchasing Managers’ Index (PMI) rose to 62.9 in April from March’s 62.5, albeit below the initial 63.3 “flash” estimate but the highest reading since the survey began in June 1997.
An index measuring output, which feeds into a composite PMI due on Wednesday and that is seen as a good guide to economic health, edged down from March’s record high of 63.3 to 63.2. Anything above 50 indicates growth.
The backlogs of work index soared to 61.5 from 60.4, a survey high.
French manufacturing growth eased off a little from March’s peak as bottlenecks weighed on the recovery but Italian factory activity grew at its fastest rate on record, sister surveys showed.
German factories have been humming along during the pandemic, almost undisturbed by the related lockdowns, and activity accelerated in Europe’s biggest economy early this year on strong demand from the United States and China.
Its latest PMI was only just below March’s high at 66.4. China’s factory activity growth slowed and missed forecasts as supply bottlenecks and rising costs weighed on production, a survey showed on Friday.
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