(MENAFN- Khaleej Times) A euro-area manufacturing index increased to 53.9 from 52.7 in December, Markit Economics said in a statement on Thursday. That exceeded the median estimate of 53 in a Bloomberg News survey of 39 economists. A Chinese gauge dropped to 49.6 from 50.5, weaker than even the most pessimistic forecast in a survey. A number below 50 indicates contraction
Asian stocks fell and Treasuries rose after the report from China. The drop in the index may reinforce the view in the Bloomberg Global Poll published this week that showed China's slowing economy as the biggest concern among investors. That poll also indicated growing optimism about the US and euro-area economies
"The momentum is clearly with advanced markets," Christian Schulz, an economist at Berenberg Bank in London, said in a telephone interview
"Whereas emerging markets, which have had a strong run over the past couple of years, are now back to reality. There are many vulnerabilities in emerging markets that are now being uncovered as cheap money flows are fading.
Markit's services Purchasing Managers Index for the euro area rose to 51.9 this month from 51 in December. A composite of both manufacturing and services increased to 53.2 from 52.1
US manufacturing growth slowed in January for the first time in three months, hobbled by new orders, though a recent trend of stronger growth appeared to be intact, an industry report showed on Thursday
Markit said its preliminary US Manufacturing Purchasing Managers Index dipped to 53.7 from December's reading of 55.0. Economists polled by Reuters expected no change. Slower rates of output and new order growth were the main factors behind the fall, the survey showed. Output slipped to 53.4 from 57.5 while new orders fell to 54.1 from 56.1
Thursday's euro-area manufacturing data add to encouraging signs that the region's nascent recovery is strengthening. Economic confidence improved in December to the highest level since July 2011, and industrial production increased an annual three per cent in November. The European Central Bank forecasts 1.1 per cent economic growth in the euro zone this year, accelerating to 1.5 per cent in 2015
In Germany, Europe's largest economy, factory output surged to a 32-month high in January, "with companies reporting sharp and accelerated growth of output and new orders," Markit said. A French gauge rose to a three-month high
"Europe's economy is growing again and its recovery is now spreading from exports to domestic demand too," ECB President Mario Draghi said in an interview with the Neue Zuercher Zeitung published on Thursday
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