Eurozone manufacturing hits two-year high: survey

Manufacturing in the eurozone hit a two-year high in January, with Germany and France leading the way for post-recession Europe as Spain and Greece fell further behind, a survey showed Monday. The 16-nation euro currency bloc's purchasing managers' index (PMI) for the manufacturing sector, published by data and research group Markit, rose to 52.4 points in January from 51.6 points in December.

This was the highest level for two years and continued the upward progression from a record low seen last February. However, the figures also highlighted a two-track recovery emerging for the eurozone. There were "noticeable disparities" between eurozone nations, according to the survey. While Germany, France, Italy, Austria and the Netherlands all saw stronger rates of expansion than in December, Spain, Ireland and Greece all recorded lower output and faster rates of contraction.

"The recovery is becoming two-track, with Spain and Greece in particular falling further into recession when growth in most of the other nations, led by France and Germany, is accelerating," Markit senior economist Rob Dobson said. The recovery is also an increasingly jobless one, he warned. "Manufacturers are continuing to focus on reducing headcounts and lowering stocks despite gains in output," he said. Unemployment has hit 10 percent in Europe in the fallout from the worst slump since the 1930s.