German and French industries show resilience in February. According to market researcher Markit, who came up with preliminary estimates, industrial activity in Germany is increasing for the eighth month in a row. In addition, the manufacturing industry is growing at the fastest rate in three years. French factories reported the fastest growth since early 2018. In both countries, the largest economies of the euro zone, companies face coronavirus measures such as lockdowns and other restrictions. They also cause problems for industry, but they have a negative impact on the services sector in particular. In France, total economic activity is also lower, mainly due to the closure of shops, restaurants and travel restrictions. Factories in both France and Germany face various problems. In Germany, for example, there are record delays in the delivery of spare parts, while there is also a shortage of raw materials. Transport capacity is also under pressure. Economic activity declined throughout the euro area. This decline was also entirely due to the malaise in the services sector. Industrial production in the country Block recorded the largest increase in four months. But here too there are delays when it comes to the delivery of parts. So-called input costs for industry rose to the highest level in almost 10 years. According to Markit, the outlook has improved, with companies in the region being increasingly optimistic about the recovery. If the vaccination programme gains speed, it can also promote recovery.
