Euro Area Inflation at 2.7%; Manufacturing Activity Mixed

Arthi Gupta
01 Feb, 2012
New York City

Manufacturing activity in the euro area was mixed and French manufacturing activity declining further in January. Euro area annual inflation remained unchanged but German flash consumer price inflation rate fell in January. Norwegian jobless rate rose in November.

[R]2:00 PM Frankfurt – Manufacturing activity in the euro area was mixed and French manufacturing activity declining further in January. Euro area annual inflation remained unchanged but German flash consumer price inflation rate fell in January. Norwegian jobless rate rose in November.[/R]

Euro-zone Inflation Stable

Euro-zone annual inflation remained unchanged at 2.7% in January, according to a flash estimate from Eurostat today.

Inflation stays above the central bank''s target of ''below, but close to 2 percent'' since December 2010.

Separately, activity in the euro--zone manufacturing sector rose in January, final data from a survey by Markit Economics showed today.

The seasonally adjusted purchasing managers'' index for the manufacturing sector increased to 48.8 in January from 46.9 in December, marking the second consecutive monthly increase.

German Inflation Dips

Germany''s flash consumer price inflation rate fell to 2% in January, from 2.1% in December, flash estimates from the Federal Statistics Office showed.

German Manufacturing Grows

Germany''s manufacturing activity increased in January, survey data from Markit Economics showed.

The Markit/BME final Purchasing Managers'' Index rose to 51 in January, a six-month high, and above the flash reading of 50.9. The index improved from 48.4 in December.

French Manufacturing Activity Falls

The French manufacturing activity declined further in January, according to a survey by Markit Economics.

The seasonally adjusted purchasing managers'' index for the manufacturing sector dropped to 48.5 in January from 48.9 in December. The latest reading matched the preliminary estimates.

New business received by French manufacturers dropped for the seventh consecutive month

Swedish Factory Sector Improves

Sweden''s purchasing managers'' index for the manufacturing sector rose to 51.4 in January from 48.9 in December, data from a survey by Swedbank showed today.

Spanish Factory Activity Falls

Activity in the Spanish manufacturing industry fell in January, data from a survey by HSBC Bank and Markit Economics showed today.

The seasonally adjusted purchasing managers'' index for the manufacturing sector rose to 45.1 in January from 43.7 in December.

Swiss Manufacturing Sector Drops

Switzerland''s Purchasing Managers'' Index fell to 47.3 in January, from the revised 49.1 in December, a survey data from the SVME Association of Purchasing and Materials Management and Credit Suisse showed.

Italian Factory Activity Advances

The Italian manufacturing sector climbed in January, data from a survey by Markit Economics and ADACI showed.

The seasonally adjusted purchasing managers'' index for the manufacturing sector rose to 46.8 in January from 44.3 in December.

Norwegian Jobless Rate Rises

Norway''s unemployment rate increased slightly in November, data released by Statistics Norway showed.

The unemployment rate for November, the moving average of the October-December period, was at a seasonally adjusted 3.4%. In August, the average jobless rate was 3.2 percent, the average of the July-September period.

On an average, around 89,000 persons were unemployed in November, higher than around 84,000 in August.