Factories in Greece, France suffer falling production, job cuts

PanARMENIAN.Net - Factories in Greece and France suffered falling production and job cuts last month even while the sector across the eurozone enjoyed rising demand and output, according to the latest industry snapshot, the Guardian says.

Manufacturing growth across the currency zone as a whole eased off slightly in April from March’s 10-month high, revealed the latest eurozone manufacturing PMI poll by financial information company Markit. Ireland and Spain led the continued expansion although the pace of growth slipped.

Manufacturers also raised average selling prices for the first time since August 2014, news that will reassure policymakers at the European Central Bank (ECB) after launching a large-scale quantitative easing (QE) program to head off deflation.

Since the €60bn-a-month stimulus program was launched in March, economic data from the bloc has pointed to steadier growth – official figures last week showed the four-month run of deflation came to an end in April.

In Greece, whose recently elected anti-austerity government continued talks over the weekend with international creditors, the contraction in new orders and production accelerated sharply, the report said.

The eurozone manufacturing report contrasted with a similar survey out from China overnight, showing factory activity there suffered its worst drop in a year in April.

Manufacturers in the world’s second-largest economy shed jobs and cut prices as they were hit by a drop in domestic demand. The main index of factory activity fell to 48.9 in April from 49.6 in March in the HSBC/Markit PMI report.

But the Chinese stock market rallied after the report as it raised hopes of fresh government stimulus to shore up economic growth.