Manufacturing in the eurozone remained “meagre” in January, according to the respected index Markit.
Domestic demand was weak as well as export performance, leading factories to cut prices. Falling oil prices helped drive down manufacturing costs.
Markit believes that the quantitative easing programme launched by the European Central Bank should boost business and consumer confidence in the euro area. The meagre rate of expansion vindicated the ECB’s decision.
A fall in the value of the euro should foster more exports.
Markit said improvements in business conditions were seen in Germany, Spain, the Netherlands and Ireland during January.
But this was countered by downturns in France, Italy, Austria and Greece.
Data from Germany showed factory growth was also slower than previously thought.
