Manufacturing activity in the 17 countries that share the euro grew by more than expected to open the second quarter, although the divergence between leading and peripheral economies continues to grow, according to The Daily Telegraph. On Monday, Markit reported that its manufacturing purchasing managers’ index for the eurozone was up slightly to 58 in April from 57.5 the month prior. The figure was slightly above the flash estimate of 57.7 and marks the 19th consecutive reading above the 50-point indicator for growth.
Markit economist Chris Williamson said, “2011 has so far seen the best start to a year since the dot-com boom of 2000,” and continues to be driven by robust growth in leading eurozone economy, Germany. The PMI for France also remained high, although austerity measures in debt-burdened countries have helped create a wide gap between leading and peripheral economies. The PMI for Greece in April was 46.8, which was a slight improvement but reflects an ongoing industrial contraction. Additionally, Williamson highlighted the disappointing “near-record increase in manufacturer’s selling prices,” with the output price index remaining elevated at 61.0 in April from 61.5 previously.