Bangalore -Activity of the manufacturing sector of the euro zone has increased in August for the first time since mid -201022 led by an increase in domestic demand and production, showed a survey of business leaders published on Monday.

The HCOB index of purchasing directors (PMI) of the manufacturing industry of the euro zone has reached its highest level for three years, clock at 50.7 in August, against 49.8 in July and 50.5 during a preliminary estimate.

The 50 mark distinguishes growth and contraction of activity.

While the growth in industrial production has reached its highest level since March 2022, new orders – a key indicator of demand – have increased at their highest rate in almost three and a half years.

“The economic recovery in the manufacturing sector extends … New orders also suggest a sustainable recovery,” said Cyrus de la Rubia, chief economist at the Commercial Bank Hamburg.

“Interior orders have increased and compensate for the weakening of foreign demand. In fact, the best remedy against American customs duties could be to strengthen the internal demand … many are planning to produce more in 12 months than they do today,” he added.

Among the countries of the euro zone, Greece and Spain show good student with PMIs of 54.5 and 54.3 while France and Italy also recorded growing activities in the sector in August.

On the contrary, the activity of the manufacturing sector in Germany remains in decrease, but has reached its highest level for 38 months at 49.9, close to regaining growth.

The prices billed by the manufacturers have also decreased slightly, despite a marginal increase in input costs.

(Written by IRandradip Ghosh; Bertrand de Meyer, edited by Augustin Turpin)

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