Economic activity in the euro area industry reached its highest level in December since May 2018, showing further recovery from the COVID-19 crisis. It was reported by the British market researcher Markit on the basis of his Purchasing Manager Index reflecting activity.

According to Markit, the gauge came to a final position of 55.2. That was 53.8 in November. The rate of growth was slightly lower last month than previously thought, because on a provisional estimate a level of 55.5 was reported by Markit. A stand of 50 or more indicates growth, below it indicates shrinkage. The gauge has been over 50 for six months now.

The strongest growth was accounted for by Germany. In particular, it benefited from strong exports. In France, Italy and Spain, activity also increased, but at a slower pace.

Markit’s chief economist, Chris Williamson, explains in an explanatory statement that euro area industry closed down sharply in the year 2020. According to him, industry continues to support the economy, as the services sector is affected by the new quarantines in many European countries.