Eurozone manufacturing sector contraction slows in Jan may see growth soon

The contraction of manufacturing sector across the euro zone slowed in January as the Markit compiled Purchasing Managers' Index, an important parameter to judge the activity in the sector, increased to 47.9 in January compared to 46.1 in December. Though any reading lower than 50 indicates contraction in the sector, this is decent improvement compared to PMI rating of last couple of months. The PMI rating for the euro zone manufacturing sector has been below the 50 mark since August 2011.

The PMI rating for Germany, biggest economy of euro zone, jumped to 49.8 in January compared to 46 in December which shows strong improvement as well and helped to push the euro zone PMI rating higher. Most of the big euro zone member countries have witnessed improvement in the PMI rating in January. This also shows that the worst may be over and the euro zone manufacturing sector may come to growth path soon.