Experts are giving the European Central Bank (ECB) credit for a boom in manufacturing jobs across the 19 nations of the Eurozone. The IHS Markit reports not only growth, but “robust growth” in all 19 countries.
Even the deeply troubled economy of Greece is enjoying renewed economic generation. It wasn’t long ago that Greece’s 30% reduction in economic output threatened the entire European Economic Union. Another troubled economy, that of Italy, is enjoying new vigor.
One action taken by the ECB said to have spurred the boom was its recent decision to cut interest rates to zero. It also began to print money, taking a cue from the U.S. Federal Reserve, which did the same. The Bank of England also opted to print cash, bolstering the U.K.’s post-Brexit economic outlook.
Growth across the Eurozone is at a 20-year high, said Chris Williamson who IHS Markit chief business economist. New orders for manufactured goods has exploded to “record levels,” he said.
Factories need to churn out a lot of stuff for the simple reason that demand has increased dramatically. There are some worries on this front, however. While more goods are being sold, costs are also rising sparking a fear of future inflation. Part of the reason for that is the recent recovery of the oil market. World price for crude oil is slowly climbing out of a historic low. Oil prices tanked in 2014.
In the meantime, Eurozone businesses are enjoying increased exports to China, the United States, Canada, other European nations and Japan.