Manufacturing Boost Helps Bolster Euro Area’s Top Two Economies

Factory output in the euro area’s two largest economies proved resilient in February even as lockdown restrictions continued in both countries.

German economic activity expanded for an eighth month, with manufacturing growing at the fastest pace in three years, according to IHS Markit.

Manufacturing Boost Helps Bolster Euro Area’s Top Two Economies

French factories reported the quickest expansion since early 2018, though the private-sector economy shrank overall as services were hit by closures to restrict the spread of the coronavirus.

Factories in both countries experienced increased supply constraints, with Germany reporting record delays in the delivery of components amid raw material shortages and squeezed transport capacity.

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