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Eurozone Manufacturing Growth Slows, Jobless Rate Slips
Factory growth in the 17 countries that share the euro slowed at the end of the first quarter from the decade high posted the month before as the region’s unemployment rate dropped, according to The Wall Street Journal.
Factory growth in the 17 countries that share the euro slowed at the end of the first quarter from the decade high posted the month before as the region’s unemployment rate dropped, according to The Wall Street Journal. On Friday, the Markit Economics reported that its manufacturing index for the eurozone dropped 1.5 points in March to reach 57.5, falling slightly lower than economists’ had forecast. The report also showed that factory gate prices rose at the highest rate on record.
A separate report from the European Union reported that the unemployment rate in the eurozone dropped to 9.9% in February from 10% in the previous month, although the January data was revised down to 9.9% as well. The decrease in the region’s jobless rate was led by declines in unemployment in leading economies such as Germany which was seen at 6.3%, while debt-burdened peripheral nations struggled, with Ireland and Spain at 14.9% and 20.5%, respectively. Mounting inflationary pressure could prompt the European Central Bank to raise interest rates, although Chris Williamson of Markit warned tightening “may drive further divergences.”