BRUSSELS, Belgium: A survey released this week showed that as supply chains begin to recover and inflation eases, the decline in manufacturing in the euro zone has likely passed its lowest point.
In December, the S&P Global's final manufacturing Purchasing Managers' Index (PMI) for the EU rose to 47.8, compared to November's 47.1, but still below the 50 mark separating growth from contraction.
An index measuring output also recorded 47.8, compared to November's 46.0, the seventh month of sub-50 readings, but the highest level since June.
Due to the holiday season, the final data was compiled earlier than usual last month.
"A second successive monthly cooling in the rate of loss of factory output brings some cheer for the beleaguered manufacturing sector as we start the new year," as quoted by Reuters.
The mood of European Central Bank policymakers, who have been trying to calm rampant inflation by tightening monetary policy, will be brightened by the fact that both input and output price sub-indexes remained high, despite dropping considerably.
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