Manufacturing News

Positive signs for European manufacturers

Europe’s manufacturing industries contracted at their slowest pace in eight months in May, adding to evidence that the region’s worst recession since World War II is easing.

Markit Economic’s latest manufacturing index rose to 40.5 this month from 36.7 in April.

The index is based on a survey of purchasing managers with a reading below 50 indicates a contraction.

Observers suggest Europe’s economy is showing signs it may recover later this year as stimulus packages and interest-rate cuts around the world prop up demand.

German investor confidence rose to a three-year high in May and European exports climbed for a second month in March.

The report “fuels hopes that eurozone economic contraction is now slowing substantially,” said a leading European economist.

However he warned, the economic and financial environment remains very difficult, activity is still clearly contracting, relapses remain highly possible.

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