Eurozone manufacturing shows accelerated recovery

The eurozone manufacturing sector in August recovered with the fastest pace in over two years, survey company Markit said on Monday. According to its latest data, the eurozone's manufacturing purchasing managers' index (PMI) increased to 51.4 from 50.3 in July, reaching its highest level since June 2011. A PMI reading of 50 points or greater indicates expansion. On the country level, France and Greece were the only countries to register readings below 50. The Netherlands topped the PMI table, followed by Austria and Ireland. Meanwhile, growth rates for production, new orders and new export business grew in the fastest pace since May 2011. Production at German, Italian, Dutch and Austrian manufacturers all strengthened on the back of new orders. "Although gains are still only modest, a pick up in new orders suggest the upturn will be sustained into September," Chris Williamson, chief economist at Markit, commented. He warned, however, that the job market needed to be boosted. "The fact that companies remain reluctant to take on staff due to the need to cut costs to boost competitiveness and offset rising oil prices suggests that there's a long way to go before the recovery feeds through to a meaningful job market improvement," Williamson said.