LONDON (Reuters) – The downturn in euro zone manufacturing activity eased again last month suggesting the worst may be over, according to a survey which showed price pressures slackened and the fall in demand moderated, driving a surge in optimism.
S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) climbed to a five-month high of 48.8 in January from December’s 47.8, in line with a preliminary reading but still below the 50 mark separating growth from contraction.
An index measuring output, which feeds into a composite PMI due on Friday that is seen as a good guide to economic health, registered 48.9, its highest since June and an improvement from December’s 47.8. It was nevertheless its eighth straight sub-50 reading.
“Although euro area manufacturers continued to report falling output and deteriorating order books in January … the picture is considerably brighter than the lows seen back in last…