LONDON: Manufacturing in the eurozone grew at one of the fastest paces on record in January, with high demand fuelling inflationary pressures.

A Purchasing Managers’ Index for the sector slipped to 59.6 – matching a previous flash estimate – from 60.6 in December, IHS Markit said yesterday. Companies raised selling prices by the most in almost seven years, partially due to a steep increase in energy costs, the London-based company said.

Solid global trade, a recovering labour market and monetary stimulus from the European Central Bank are all supporting the currency bloc’s economy, which expanded last year by the most in a decade. While inflation so far has remained muted, policy makers have expressed confidence that price growth will accelerate.

“The eurozone’s manufacturing boom continued in full swing,” said IHS Markit chief business economist Chris Williamson. — Bloomberg

...

Full Article on TheStar