Germany leads European manufacturing to best month since 2018

Euro-area manufacturing grew at the fastest pace in more than 2 ½ years in December, bringing some positive news at the end of a horrific 2020 for the region’s economy. Final readings of IHS Markit’s monthly surveys showed growth led by Germany, where activity expanded the most in almost three years, with all other countries covered also reporting an improvement on November. The euroarea index came in at 55.2, up from 53.8 though slightly lower than an earlier preliminary reading. The improvement comes as governments continue to grapple with the coronavirus. The latest restrictions to contain the spread have been mostly confined to services such as bars and restaurants, allowing manufacturing to continue. That’s limiting the downside to the economy compared with the huge slump seen during the initial phase of the pandemic.