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Euro-Region Manufacturing Output Contracts for Seventh Month

Euro-region manufacturing output contracted for a seventh month in February as the euro-area economy struggles to rebound from a contraction in the fourth quarter.

A manufacturing gauge based on a survey of purchasing managers in the 17-nation euro region rose to 49, a six-month high, from 48.8 in January, London-based Markit Economics said today. That’s in line with a preliminary estimate on Feb. 22. A reading below 50 indicates contraction.

Manufacturers may see waning sales growth as euro-region governments toughen spending cuts just as global demand weakens. Euro-region unemployment may have held at 10.4 percent in January, according to a Bloomberg survey.

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