German Manufacturing Foreshadows European Improvement
German manufacturing continued to regain its trademark strength in October, which is of massive importance to the recovery of the European Union economically. It’s noteworthy on the world stage as well because of the historic importance of German exporting activity outside of Europe to its economic performance.
“October data signaled a solid increase in new work received by services providers,” financial research firm Markit said in a statement Wednesday tied to the release of the German and Eurozone Composite PMI results. “The latest expansion was the most marked since January and widely linked to improving business and consumer confidence.” Markit added there was a surge in new orders in October and “the strongest business outlook for [the last] six months” in Germany.
Also of note, was manufacturing growth in the United Kingdom. The European economy is by no means healthy or out of the woods yet. Still, news of increasing orders and activity in Germany and the United Kingdom, as well as Austria and the Netherlands, is being treated as a potential marker of a turnaround for the beleaguered region.
- Brian Shappell, CBA, CICP, NACM staff writer