LONDON (Reuters) - The downturn in euro zone factory activity eased for a third month in January but could stretch through this quarter, according to a survey on Thursday that showed a majority of sub-indices remained within the contraction zone.
HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 46.6 in January from December's 44.4, matching a preliminary estimate, but still firmly below the 50 mark separating growth in activity from contraction.
An index measuring output, which feeds into a composite PMI due on Monday and is seen as a good gauge of economic health, jumped to 46.6 from December's final reading of 44.4, in line with the flash estimate.
"For those with a glass-half-full perspective, the set of manufacturing PMI indicators offers a dose of optimism. Firstly, the headline PMI has marked three consecutive months of increase, a trend mirrored in the forward-looking indicator for new orders," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
"Secondly, there is a broad-based upward trend in sub-indicators, encompassing stock of purchases, backlogs of work, and output."
Almost all sub-indices moved in a positive direction while those covering pricing showed inflationary pressures may have weakened last month.
That would likely be welcomed by policymakers at the European Central Bank who last week left interest rates at record highs and reaffirmed their commitment to fighting inflation.
With things appearing to be moving in the right direction optimism about the year ahead was at its highest since April. The future output index bounced to 57.1 from 55.8.