Eurozone manufacturing boom at risk of running out of steam
London — Eurozone manufacturing growth accelerated to a record in December, capping a solid year for factories which is now eating into production capacity. With export demand strengthening, IHS Markit’s monthly report on manufacturing showed both new orders and output were the strongest in 17 years. Germany’s gauge rose to a record and France improved. Global growth also got a boost from a solid reading in China’s manufacturing sector. But while the reports highlight momentum in manufacturing heading into 2018 after the global economy’s best performance in three years, they also point to a squeeze that could put a limit on expansion. Supply constraints — meaning companies find it hard to keep up with demand — were highlighted in the purchasing managers index (PMI) for almost every major economy, including China, Germany, France and the UK. In the euro area, IHS Markit said "robust intakes of new business tested capacity" and there was a jump in backlogs of work as factories struggl...
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