Concerted efforts at stimulating the economy by the ECB, appears to be paying off.
As per the results of a survey, manufacturing activity in the Eurozone hit its all-time high in November this year.
The development could be a welcome sign to policy makers at the European Central Bank (ECB) who are expected to announce a continuation of their asset purchase program when they meet sometime next week.
According to IHS Markit’s final manufacturing Purchasing Managers’ Index, the euro zone gave its highest ever reading since January 2014 and stood at 53.7.
Anything above 50 indicates growth.
However, a sub-index which measures factory output dipped slightly from 54.6 to 54.1.
“The November survey provided firm evidence that the weaker euro is providing a meaningful stimulus to manufacturing,” said Chris Williamson, chief business economist at IHS Markit.
“While the ECB looks poised to extend its quantitative easing program at its December meeting, the upturn in growth and inflationary pressures will further fuel talk of whether we could see the ECB start tapering its asset purchases next year.”
In a sign that the ECB’s economic stimulus is working, inflation in the Euro zone has inched up by a tenth of a percentage point in November.
For the first time in a year, consumer prices have risen by 0.6%. However, it is still below the ECB’s target of 2%.